Town Square

Post a New Topic

Hotel tax increase measure scaled back

Original post made on Jun 19, 2018

The Palo Alto City Council unexpectedly scaled down on Monday night its plans to raise the city's hotel-tax rate after several council members balked at making the local rate so much higher than in other jurisdictions.

Read the full story here Web Link posted Tuesday, June 19, 2018, 9:10 AM

Comments (19)

Posted by Resident
a resident of Midtown
on Jun 19, 2018 at 10:33 am

The city could not get any agreement to raise taxes on residents, so now they try to raise taxes on visitors, and on the way hurt the local hotel business, ending up with less taxes collected.

It's time a rich city like Palo Alto will use a more financially responsible behavior, and get more done with less money spent. If you want to know how, check with most other cities in our state.


Posted by Resident
a resident of Another Palo Alto neighborhood
on Jun 19, 2018 at 10:36 am

The biggest problems we have with the city's finances are to do more with the way they spend what they have rather than the raising of them.

Taxes are something we have to live with, but it is much easier to pay for something when we can see how they are being spent wisely. At present, I have seen so much City wastage that I find it hard to agree to anything new in the way our City decides to tax us or those who work or visit here.


Posted by allen
a resident of Old Palo Alto
on Jun 19, 2018 at 10:49 am

What the state needs to do is close the loophole for business in Prop 13. Right now taxes only go up when a business sells, which happens less often than homes. Plus, businesses don't completely sell. The seller maintains 10% so that the new buyer can maintain the old tax rate. That has to change. This hotel tax isn't going to change the number of people staying in local hotels by one person.


Posted by Annette
a resident of College Terrace
on Jun 19, 2018 at 11:12 am

Annette is a registered user.

Last night's meeting was pretty decent, cordial even, until this discussion. It was ironic to hear Fine admonish his colleagues about playing games. What seems to be lost in the discussion is the concern many people have about HOW money is being spent, with the various traffic calming experiments at the top of the "are you kidding me" list. I also think the budget discussion might have played out differently if the TOT discussion had preceded it.

Impressive presentation last night by Kiely Nose of the city's budget office. She appears to know the numbers and what's behind the numbers.


Posted by Arthur Keller
a resident of Adobe-Meadow
on Jun 19, 2018 at 11:12 am

Councilmember Fine said the city has done its polling. The City has done a poll, but it failed to ask whether voters would support a business license tax or a head count tax. The Council majority followed the maxim, "Don't ask the question if you don't want to know the answer."


Posted by Online Name
a resident of Embarcadero Oaks/Leland
on Jun 19, 2018 at 11:24 am

Online Name is a registered user.

Arthur Keller's right about failing to ask if we'd support a business tax or if we would have supported taxing marijuana sales before rejecting the will of the voters who voted for it.

The city may have done its polling so it should know its satisfaction ratings are slipping 20% each year. Only 30% gave the city a satisfactory rating on ease of getting around town yet the city's going to keep making us miserable with its traffic "calming" which have cost/will cost about $40,000,000.

Say no to wasteful spending by defeating the hotel tax and supporting the ballot initiative to curb office growth.


Posted by Really?
a resident of Community Center
on Jun 19, 2018 at 11:45 am

This is a general response: To ask people living in Palo Alto to vote to raise taxes on motels and hotels...... can no one see how ridiculous this is? They don’t stay at them! I’ve heard complaints from people saying they’ve had to use other towns’ motels after the last raising taxes was passed. Everyone coming to Palo Alto that needs a motel/ hotel is not wealthy or on a business account! Many come for medical reasons. Many are family members in need of a motel while their loved one is in hospital. Having to use a motel in a town farther away is unfair. Palo Alto, you’ve enough money. Where is the compassion?


Posted by senor blogger
a resident of Palo Verde
on Jun 19, 2018 at 3:46 pm

What about a rental car tax?


Posted by Gale Johnson
a resident of Adobe-Meadow
on Jun 19, 2018 at 3:59 pm

Gale Johnson is a registered user.

@senor blogger

Great idea! Also, taxes on each pet owned by residents. No more budget worries!


Posted by 20 Years in Palo Alto
a resident of Downtown North
on Jun 19, 2018 at 4:17 pm

20 years here and starting to wonder if it's time to go. Really loved this city at first. But, it's changed so much in the last 7 years.

Zero chance I'm voting for this. I did support the raise in 2014. Stop spending money on Bike boulevards and roundabouts, stop budgeting money for a renovation of the Council Chambers, stop the Residential Parking program which is just making our city more and more impossible to navigate for lower-salaried workers.

Oh, and if given the opportunity, absolutely voting yes for the 2/3rd required vote for future tax raises. Make the Council do their work in actually getting this stuff passed by speaking with, and convincing, the residents.


Posted by Curmudgeon
a resident of Downtown North
on Jun 19, 2018 at 4:38 pm

Get real, gang. Somebody in this alleged tech-savvy town needs to do some math. Like, 2% added onto a $1,000 room at the Clement is $20.00. Who's gonna be priced out of town by that?

Dropping from 16% to 15.5% on the same room is a $5.00 knockdown. Kniss comes through for her friends again.


Posted by Local Resident
a resident of Another Palo Alto neighborhood
on Jun 19, 2018 at 5:09 pm

@20 Years in Palo Alto -- yes, it's time to go. Cash out your house now, the taxes will go up for the next occupant, and we'll have more money to keep the city solvent.


Posted by Chris
a resident of University South
on Jun 19, 2018 at 9:10 pm

20 years in Palo Alto,

You lost all credibility when you doubted the success of RPP.

Your criticism of the hotel tax does does seem to have any rational basis. Would you care to provide one?


Posted by Resident
a resident of Community Center
on Jun 20, 2018 at 2:56 am

Interesting decision. So the council managed to reduce the income for the Infrastructure Plan and still have the highest hotel tax in the state. Sounds like the worst of both worlds.


Posted by Rer
a resident of Community Center
on Jun 20, 2018 at 5:46 am

With no Airbnb occupancy tax, I will not support a rise in the hotel tax. Fair is fair.


Posted by Resident
a resident of Midtown
on Jun 20, 2018 at 11:11 am

The city has squandered $8.7 million on changes to Ross, Moreno and Louis that are extremely unpopular with Midtown residents, create added risks for bicyclists and create serious bottlenecks on Ross and Louis Roads. This is part of a $20 million plan to congest traffic in Palo Alto and push more people to abandon their cars. THIS is how Palo Alto uses your taxes! I urge everyone to oppose ANY new tax. The city has no sense of fiscal responsibility.


Posted by Online Name
a resident of Embarcadero Oaks/Leland
on Jun 20, 2018 at 11:21 am

Online Name is a registered user.

Let's not forget about the Middlefield mess. The total figure for past and present roadwork is $40,000,000, not $20,000,000, but either way it's an outrage, esp. when the city hires outside consultants to decide if it's "appropriate and feasible" to fix their mistakes and then can't finish the study because they don't even have the safety data for Ross or any of their other boondoggles. As someone noted on NextDoor, they're using data from 2006 -- way before we were inundated with so many new commuters.

I'm still waiting for an answer from city officials and the city council on why they're planting bollards all over town, esp where they're narrowing lanes, that impede traffic flow and make it perilous for us to get into our driveways.

I agree with you that we need to oppose ANY new taxes until the city reins in its wasteful and dangerous spending.


Posted by Umbra
a resident of Downtown North
on Jun 20, 2018 at 2:54 pm

Raising sales tax .25% would fairly impact everyone.
Would people really drive out of Palo Alto to buy something to save .25% No
The guests of the hotels would still buy food from restaurants and shops. It seems like a very harsh move to TARGET hotels again.
Residents seem fine to vote on raising it but, complain about the high prices when families come to town. Hotels support many non- profits, Stanford patients families with no money by donating rooms.

Why is everything in this town so venemous and divided?



Posted by Another resident
a resident of Old Palo Alto
on Jun 21, 2018 at 2:15 pm

You just have to obsrve the fancy expensive bollards obstructing low-traffic right turns along Middlefield to get an idea of the spendy mentality of the traffic fixers.
Useless? Yes.
Make driving more difficult? Yes.
Safer? No.
Make more millions for the supplier, friend if the Manager? Yes!


Don't miss out on the discussion!
Sign up to be notified of new comments on this topic.

Email:


Post a comment

On Wednesday, we'll be launching a new website. To prepare and make sure all our content is available on the new platform, commenting on stories and in TownSquare has been disabled. When the new site is online, past comments will be available to be seen and we'll reinstate the ability to comment. We appreciate your patience while we make this transition..

Stay informed.

Get the day's top headlines from Palo Alto Online sent to your inbox in the Express newsletter.