Wednesday, June 04, 2008

F & G

Encinitas Prop F
Pass: 4852 / 56.38% Yes votes ...... 3754 / 43.62% No votes

total votes-8606

Encinitas Prop G
Fail: 5581 / 64.66% Yes votes ...... 3050 / 35.34% No votes

total votes-8631 ENCINITAS: Tourist tax leading in early returns

*According to Smart 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 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!


  1. Use the money to fix up highway 101 please thank you.

  2. The short term rentals should pay TOT tax, no doubt. But double digit taxes are too much. Greedy much?

  3. The Encinitas economy will collapse without Prop G money going to sand projects.

    We are doomed.

  4. 56.38% Yes

    That is cutting it pretty darn close for a measure that had almost zero opposition.

  5. Prepare for another hiring of more people at city hall to administer the short term rental tax. The new city employees' salaries and benefits will outstrip the money from the estimated $33,000 tax income.

  6. I think short term rentals should help pay for the cost to maintain, guard and police the beach area.

    I voted for both. I wish the city would earmark the money for improvements along the coast and not the slush general fund.

    I also wont mine if short term rentals have higher costs. They definately cost the community alot!

    Short term rental landlords SUCK and sell out our City for their personal profit.

  7. "Short term rental landlords SUCK and sell out our City for their personal profit."

    Then we should tax Jerome Stocks too!

  8. Kevin Cummings and the Encinitas Taxpaers Association did not oppose props F and G. He lobbied for a better proposition and was denied. Prop F is very flawed and could have been written better. Watch the short term rental landlords exploit the loopholes with relish.

  9. What an interesting legal question with the defeat of the additional 2% tax. The short term rentals are now required to pay 8% TOT with the other hotels and motels, but are relieved from paying the additional 2% tax. The city is taxing the two groups inequitably. Can the 2% sand tax be declared illegal if not applied
    equally to both groups?

  10. I agree. Tax Jerome stocks.

    Better yet, vote for anyone else in the November elections.

  11. voting residentJune 06, 2008 11:34 PM

    I am voting for the 2 percent in November.

    Its time for Short term rentals to pay their fair share.


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