Encinitas Prop F
Pass: 4852 / 56.38% Yes votes ...... 3754 / 43.62% No votes
Encinitas Prop G
Fail: 5581 / 64.66% Yes votes ...... 3050 / 35.34% No votes
NCT.com: ENCINITAS: Tourist tax leading in early returns
*According to Smart Voter.org prop G did not pass because it did not get the required two-thirds approval. source
The idea of taxing short term rentals may have well originated on this blog as a compromise instead of banning short term rentals outright. I support taxing short term rentals, but as usual the devil is in the details. I did not like the details of prop F.
This excerpt from the NCT.com article sums it up for me,
Prop. F would levy an 8 percent transient occupancy tax on short term vacation rentals --- units that rent for 30 days or less --- with that money going into the city's general fund. Prop. G would add 2 percent tax on the same short term vacation rentals, but would earmark that amount for beach sand replenishment.
Tourists who stay in other types of lodging in the city ---- including hotels, motels and bed-and-breakfast inns ---- already pay a 10 percent transient occupancy tax. Eight percent of that money goes into the general fund and 2 percent is used for sand replenishment.
Supporters of Tuesday's ballot measure said the funding is important to the economic health and aesthetic appeal of the city.
"... We are a tourist destination and the sand is integral to the local economy," said Andreen, adding that the early returns appeared to show that voters understood that message.
Kevin C, president of the Encinitas Taxpayers Association, said before the election that he opposed the measures. He said the city should have lowered its existing transit occupancy tax to 8 percent, then included that to include short-term vacation rentals.
In my opinion, double digit taxes are just plain evil.
When your friends Skip and Buffy come to visit and you put them up at the Leucadia Beach Inn at $155 a night, you have to pay an extra $15 bucks. So if they stay Friday and Saturday you just subtracted $30 bucks from your wallet that isn't going to the local restaurants or boutiques. Oh well, it's only money.
Of course, the short term beach rentals can fetch up to $5000 a week in Encinitas. It's still unclear just how many short term rentals there are in town and how much revenue they generate every year, but they are definitely going to be a cash cow for the city. I sense a city staff raise in the near future!