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Posted by: thepinetree on 12/15/2012 11:08 AM
Updated by: John_Hamilton on 12/17/2012 10:21 AM
Expires: 01/01/2017 12:00 AM
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The Case for Voting Against a TOT Lodging Tax. Guest Opinion by Dunbar House's Arline Taborek (Updated)
Murphys, CA...(Updated as of 12/17/12. Part of the original text was missing. This has been corrected now.) The lodging industry in Calaveras County continues to be blind-sided by the Calaveras Visitors Bureau (CVB). The CVB which receives the majority of their funding through lodging, and for whom lodging relies on to promote and advocate their business, announced their position to stand behind their decision to partner with Citizens for a Better Calaveras (CBC) which includes a select coalition of special interest groups to raise the Transient Occupancy Tax (TOT) from 6% to10%. The CBC special interest groups are: Calaveras Humane Society, Friends of the Calaveras County Library, Senior Centers of Calaveras, Calaveras Arts Council, Calaveras County Fair and Calaveras County Parks & Recreation Commission...
April 2012: the first time that lodging members were made aware that the CVB was considering a Tourism Marketing District tax (TMD,) and that CVB was already in negotiations with Civitas Group Consulting.
September 2012: the first time that lodging was made aware that CVB had made a backdoor deal with CBC’s entitlement groups. CVB expected lodging members to decide whether they wanted to be taxed through a TMD or a TOT increase.
November 13, 2012: three lodging members attended a CVB Board Meeting with petition signatures from many lodging members against CBC partnership. Steve Markle indicated that CVB would step back from the initiative if we were to come back with at least 50% +1 signatures.
November 28, 2012: Lodging attends CVB ad hoc meeting with over 75% of the majority of lodging signatures. Rich Taborek stated, several times that he had the required signed petitions, and not one board member made a motion to even acknowledge the petitions. CVB Executive, Lisa Bolton, told Taborek that she had seen his presentation and it was “flawed,” and that the members of the lodging community didn’t get all of the correct information and therefore, didn’t fully understand, and were confused about what they signed.
At no time did the CVB poll its entire membership, especially affected lodging members regarding their position.
Although the meeting was called specifically for the purpose of a vote, the meeting ended without a vote. CVB basically dismissed and disregarded the lodging community, and disrespected lodging members by denying them their due process of either a yes or no vote; only to then read in the paper CVB’s decision to back CBC, while implying that lodging has been an integral part of the decision process from its inception.
Many lodging members have experienced decreases since 2008, but have noticed a significant increase in “day-trippers” who come in on buses, or are within a 1-2 hour drive home. We have seen an increase in guests negotiating an even lower price than the offered special, which guests say needs to include the TOT tax. We are forced to lower our prices, while still maintaining our level of service. While County Tourism remains strong, overnight lodging is down, as confirmed by County Tax Records “all as compared to 2007”:
2008: down 2%
2009: down 19%
2010: down 15%
2011: down 11%
Make no mistake that if we are asking people to spend their money, they want the most they can get, for the least that they can spend. Why not promote 6% as a cost savings to entice tourists?
No one is arguing that CBC entitlement groups aren’t a valued entity here in the County.
There are all kinds of organizations here in Calaveras that all do a great deal to benefit the “quality of life and business” besides those cited by CVB and CBC.
It is important to distinguish that “quality of life” has nothing to do with tourism.
CBC entitlement groups generate few actual tourism dollars, so they should not be receiving tourism monies.
This isn’t just a 4% increase in TOT rate. CBC is hoping for a 2/3 super-majority vote which means that CBC will control the ENTIRE 10%. The CBC coalition has positioned itself so well to receive TOT monies, that if the vote succeeds, and CVB doesn’t align with CBC, CVB can be cut out of the TOT completely.
One key reason that CVB is in favor of this initiative passing is: TOT monies will be taken out of the hands of the County Board of Supervisors.
The CVB states that at any time, the Board of Supervisor (BOS) can eliminate their funding. To date, the BOS has not ever eliminated CVB Funding. TOT proceeds funding was decreased for a time, but has been reinstated to the normal 33%.
If this initiative passes, there will no longer be any TOT funds going to the General Fund or to Public Works. Instead, it will go directly and exclusively to the CBC’s six (6) entitlement groups.
Pat McGreevy stated in a previous article that the Sheriff’s department will continue to receive the SAME 20% of TOT proceeds that they have been receiving. McGreevy now states that if TOT passes it would mean enough money for 2 new deputies to be hired. How? Pat’s figures don’t add up. Pat, founder/chief architect of the CBC and the proposed TOT increase initiative has two conflicting statements.
McGreevy also stated that people want good roads and to keep potholes filled. However, Steve Wilensky, who brokered this deal with CVB, publically stated that “roads will go away.” As of this writing, the CBC proposed initiative clearly states: 2% to Sheriff, 4% to CVB and 4% to CBC members. No roads.
The CVB states that they will be able to work to create and actively promote lodging packages and co-op marketing opportunities to give visitors incentives to stay and play. What is preventing CVB from promoting packages NOW via their existing website, FaceBook, etc., other than time and effort?
What is ethical about CBC trying to steal TOT tourism monies, cutting out roads and general fund services, threatening to exclude a non-supportive CVB, all to fund their own 6 entitlement groups? Is this what CBC considers fair business practice?
What is ethical about CVB supporting CBC against the clearly expressed wishes of the majority of the lodging businesses affected by this, their very own members?
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