Word from a Friend

| APTOS LIFE MARCH 2, 2022 10

What’s on the June Ballot?

This June, voters will have an opportunity to weigh in on a handful of funding measures for the unincorporated county (including Aptos). Here is an overview of the proposals, their purpose and estimated revenues it would provide to the county.

Transient Occupancy Tax

this proposal would increase the TOT rate from 11% to 14%, generating approximately $700,000 in the first year and adding $1.9 million to the base for 2023-24. The additional revenue would be treated as part of the General Fund resources used to fund mandated programs and critical services that are not fully funded, such as public safety, parks and public health operations.

Single-Use Cup Funding

The county currently imposes a single-use cup fee of 25 cents. This fee stays with the business that collects it—none of the funding is provided to the county for environmental or other programs. The purpose of this ballot item is to propose splitting the fee so that half would stay with the businesses and half would go to the county. This would not create a new or additional fee, but is simply asking voters if they support having 12.5 cents of the 25 cent charge return to the county for general environmental purposes—including clean-water protection, waste reduction, wildfire prevention, trash and litter clean up, maintenance of parks and public areas, environmental education, and other general services. The rest of the funding would ensure the business receives adequate funding to more than cover implementation costs associated with the program.

Property Tax Revenue

We often receive questions about property taxes and how much of your property tax dollar stays locally. While this issue

A Transient Occupancy Tax (TOT) is imposed by most cities and counties on hotels, motels, inns and similar lodging establishments on persons staying overnight for 30 days or less. Typically, the lodging provider collects the tax from the guests and turns the funds over to the county or city. The county currently imposes an 11% TOT, which was approved by voters as a general tax. Together with local cities, TOT has been levied locally for more than two decades.

The last increase to the TOT isn’t on the June ballot, it helps was passed by voters in 2012. At provide context about the need the time, it increased the TOT for seeking TOT and other in the unincorporated area from local revenue streams. Due to 9.5% to 11%, a figure arrived at a Prop. 13 formula, the County after discussion with the Santa of Santa Cruz retains some Cruz County Hospitality and of the lowest property taxes Lodging Association and the Cities revenues of any county in the of Santa Cruz and Capitola. state. Only 13% of your property

Similar outreach was conducted tax dollars end up back with this year to consider an increase in county government to fund our the TOT. If approved by voters— local services. On average, this and with a start date of January equates to $463 of property 1, 2023—this proposal would tax dollars per resident. By increase the county’s TOT rate for comparison, Santa Clara County hotels, motels, and inns from 11% (under the Prop. 13 formula) to 12%, generating approximately retains $10,831 of property tax $160,000 in the first year and add dollars per resident; San Mateo $440,000 to the base for 2023- County, about $4,500; and 24. Nearly all of these funds are Napa County, about $4,000. paid for by those visiting our Approximately 50% of residents community from out of the area. live in the unincorporated county For vacation rental properties, (compared to about 4.5% or so in Santa Clara County).

By Zach Friend

Santa Cruz County Supervisor

SPLIT DECISION Voters will decide in June whether the tax on single-use cups should be divided between the county and local businesses.

As you can imagine, we hear questions about why roads or services seem better in x or y county, and one of the simplest answers has to do with how much of your property tax money stays with County government. If the Prop. 13 formula were to change at some point in the future, unincorporated residents could see significant improvements to services and infrastructure without increased taxes by simply having more of your local property tax dollars stay with local County government. As Prop. 13 was approved by voters as a state constitutional amendment, any changes to the formulation and distribution cannot occur at the local level.

As always, I’d love to hear your questions or feedback on this or any other county issue. Feel free to call me at 454-2200.