The campaign by Salida’s lodging community to overturn a voter-approved occupational lodging tax is in the hands of City Clerk Janella Martinez.
On Monday, Feb. 23, the lodgers submitted 587 signatures from Salida residents in solidarity with lodgers who are seeking to overturn the city’s new occupational lodging tax ordinance. Revenues from the tax are earmarked to pay for recreational and cultural improvements including the Salida Hot Springs Aquatic Center, area trails and open space, and the SteamPlant Theater and Event Center.
Beginning on the date the petition was submitted, Martinez has 30 days to certify its validity. One-by-one, Martinez must check the signatures on the petitions against the official list of registered voters who live within city limits. To be deemed sufficient, the petition must contain signatures from 5 percent (200) of registered voters.
Once the review of the petitions is complete, Martinez must issue a letter of finding notifying the lodgers and the city council of her determination. Any registered elector may file a protest against the lodgers petition if they have reason to believe the petition was legally or technically flawed. Grounds for protest could include incorrect wording of the petition or improper collection of signatures.
The lodgers’ petition objects to the language of the ordinance as a tax on the lodging occupation, despite the fact such wording complies with state law governing the types of taxes statutory cities such as Salida may enact. The net effect of the city’s tax is similar to the county’s 1.9 percent lodging tax that funds tourism marketing, in that the city’s flat $2.50 tax is only levied on occupied lodging rooms. Vacant rooms are not taxed. The mechanism for collection of the occupational lodging tax is also the same as the county lodging tax, as well as sales tax.
According to state law, if the petition is deemed sufficient, City Council must promptly reconsider the ordinance. If the City Council does not repeal the ordinance, the City is required to submit the measure to a vote at a regular or special election held not less than 60, or more than 150 days, after the determination of sufficiency. In January, former acting City Administrator Mike Copp estimated the cost of such a special election would be between $7,000 and $10,000.
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