November 3, 2020 - Measure Q

CITY ATTORNEY’S IMPARTIAL ANALYSIS OF
MEASURE Q

The City of Novato currently charges a tax of ten percent (10%) of the rent charged by a hotel or lodge operator for the use of any space or room in that hotel or lodging facility located in the City. This ten percent (10%) rate was approved by Novato voters in 1997. This tax is called the Uniform Occupancy Hotel Room Tax or transient occupancy tax (“Hotel Tax”). The Hotel Tax is also applicable to rents paid to operators of short-term rental properties, commonly known as VRBO and AirBnB.

Only guests or users of hotels or other lodging facilities pay this Hotel Tax. It is not a tax (i) on residents who are not guests or users of a hotel or other lodging facility or (ii) on real property.

If Measure Q is approved by the electorate, an ordinance shall be adopted which increases the Hotel Tax from ten percent (10%) to twelve percent (12%). The increase equals two percent (2%) of the rent paid to the hotel or lodging facility operator for the use of any space or room in the hotel or lodging facility. The entire Hotel Tax shall be used for City general fund purposes, such as assisting in COVID 19 recovery efforts, repairing streets, and providing 9-1-1 emergency responses.

The ordinance proposed by Measure Q would be adopted if approved by a simple majority of those electors voting on the measure at the November 3, 2020, election.

A “yes” vote would approve an increase in the City’s Hotel Tax by two percent (2%). A “no” vote would reject a two percent (2%) increase in the City’s Hotel Tax.

This Measure was placed on the ballot by the unanimous vote of the Novato City Council.

s/ JEFFREY A. WALTER City
Attorney, City of Novato

ARGUMENT IN FAVOR OF MEASURE Q

Make sure Novato is SELF-RELIANT during difficult times — Vote YES on Q to ensure VISITORS to Novato pay their fair share for using our services during the tough months ahead.

YES on Q is NOT a tax on Novato residents or property owners. It simply updates the hotel tax approved by Novato voters in 1997 to reflect the rate of our neighboring communities and include new lodging types that didn’t exist 23 years ago, like Airbnb and VRBO, to ensure all visitors are paying their fair share.

Your “YES” vote protects Novato’s QUALITY SERVICES. Now more than ever, we all rely on the critical services Novato provides, including 911 emergency services.

• YES on Q ensures fast emergency response times in any medical, health or safety emergency.
• YES on Q keeps our public places healthy, safe and clean.
• YES on Q ensures Novato is prepared for any future natural disaster/health emergency.
• YES on Q supports Novato’s local businesses and residents through the COVID-19 recovery.

By law, every dime of Measure Q funding must be SPENT LOCALLY right here in Novato. NO money can be taken by Sacramento bureaucrats.

YES on Q includes tough fiscal safeguards including independent citizens’ oversight, mandatory financial audits, and yearly reports to ensure funds are spent as promised.

NO Measure Q funds will be spent on administrators’ salaries. Measure Q is accountable to YOU — the Novato taxpayer.

Join a unanimous City Council, business leaders and your neighbors in voting YES on Q.

For factual information visit: www.novato.org

STEPHANIE KOEHLER
Downtown Novato Business Association Executive Director

BILL TYLER
Fire Chief

RAFELINA MAGLIO
Novato Citizens Finance Advisory / Oversight Committee Chair

THOMAS F. (Rick) WELLS JR.
Member of Economic Development Advisory Commission

MIKE KUIMELIS
Owner of Mantra Wines

ARGUMENT AGAINST MEASURE Q

No argument against Measure Q was filed.

FULL TEXT OF MEASURE Q

ORDINANCE NO.____

AN ORDINANCE OF THE CITY OF NOVATO, CALIFORNIA, AMENDING SECTION 16-2.3 OF THE CITY OF NOVATO’S MUNICIPAL CODE TO INCREASE THE CITY’S TRANSIENT OCCUPANCY TAX FROM 10% TO 12% OF THE RENTS CHARGED TO LODGING AND HOTEL GUESTS EFFECTIVE
JANUARY 1, 2021

THE PEOPLE OF THE CITY OF NOVATO DO ORDAIN AS FOLLOWS:

Section 1.

The voters of the City of Novato hereby find and declare as follows:

1. Pursuant to California Revenue and Taxation Code section 7280 et seq., the City of Novato (“City”) has the authority to levy a transient occupancy tax (“TOT”) upon the privilege of occupying a hotel, as defined in section 16-2.2 of the City’s Municipal Code, for a period of 30 days or less.
2. The TOT is a general tax which is deposited into the City’s General Fund. The General Fund pays for essential City services such as police protection, emergency preparedness, maintenance of streets and traffic operations, recreation services, maintenance of parks and open space, maintenance of City buildings and facilities, improvements and maintenance of overall City infrastructure and property, and general municipal services to the public.
3. The City wishes to increase its TOT from the existing 10 percent to 12 percent effective January 1, 2021, subject to voter approval, for general fund purposes.

Section 2.

Section 16-2.3 of the Novato Municipal Code is amended to read as follows:

16-2.3 Tax Imposed. The rate of the uniform hotel room tax imposed by this section shall be twelve percent (12%). For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the amount of twelve percent (12%) of the rent charged by the operator. The proceeds of said tax shall be placed in the general fund to be used for general fund purposes. The transient shall pay the tax to the operator of the hotel at the time the rent is paid. If the rent is paid in installments a proportionate share of the tax shall be paid with each installment. The unpaid tax shall be due upon the transient ceasing to occupy space in the hotel. This tax constitutes a debt owed by the transient to the city which is extinguished only by payment from the operator to the city. If for any reason the tax is not paid to the operator of the hotel, the tax collector may require that such tax shall be paid directly to the tax collector.

Section 3. Construction and Severability

This ordinance shall be broadly construed in order to achieve the purposes stated in this ordinance. This ordinance shall be interpreted so as to be consistent with all federal and state laws, rules, and regulations. If any section, subsection, sentence, clause, phrase, part, or portion of this ordinance is held to be invalid or unconstitutional by a final judgment of a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the ordinance. The voters hereby declare that this ordinance, and each section, sub-section, sentence, clause, phrase, part, or portion thereof would have been adopted or passed even if one or more sections, subsections, sentences, clauses, phrases, parts, or portions are declared invalid or unconstitutional. If any provision of this ordinance is held invalid as applied to any person or circumstance, such invalidity shall not affect any application of this ordinance that can be given effect without the invalid application.

Section 4. Amendment or Repeal.

Except as otherwise provided herein, this ordinance may be amended or repealed only by the voters of the City of Novato at a City election.

Section 5. Election for Ordinance.

An election shall be ordered to enable the voters of the City of Novato to approve or reject this ordinance. The date of the election shall be November 3, 2020.

Section 6. CEQA Findings.

The findings for this ordinance in compliance with the California Environmental Quality Act (CEQA) are the same as those set forth in the City’s Resolution 2020-54 calling for an election on this ordinance. The CEQA findings in said resolution are incorporated herein by reference.

Section 7. Publication.

The Clerk of the City of Novato is hereby directed to cause the following summary of the ordinance to be published by a newspaper of general circulation, published and circulated in the City of Novato:

Contingent upon majority voter approval, this ordinance will increase the City’s transient occupancy tax imposed on guests of the City’s hotels and lodges from 10% to 12% of the rent charged to those guests.

Section 8. Mayor’s Attestation of Results.

Upon the ordinance’s approval by a majority of the voters of the City, and upon the City Council’s adoption of a resolution declaring the election results, the Mayor shall hereby be authorized to attest to the adoption of this Ordinance by the voters of the City by signing where indicated below.

Adopted by declaration of the vote by the City Council of
the City of Novato on ______________________
effective ______________________ 2020.
______________________
Denise Athas, Mayor