One of several tax measures on the ballot for cities in San Mateo County on the November ballot is Pacifica’s Measure M, which would increase the tax for visitors staying at hotels or other short-term lodging in the coastal city.
Measure M, placed on the ballot by the Pacifica City Council, would increase the transient occupancy tax from its current 12% rate to 15%, with the money going to the city’s general fund to use for police and other emergency responses, infrastructure upkeep and repair, and community programs.
An analysis of the measure by Pacifica’s city attorney estimates that the increase would bring in about $720,000 annually if a majority of voters approve it.
Local hotel operators are divided on whether Measure M would be good for Pacifica.
Konstantin Dimitrov, general manager of the Fairfield Inn and Suites, wrote the ballot argument in favor of the measure. He said the tax increase would be paid by visitors but “will be spent on services that benefit residents and visitors, including maintaining what makes our city unique like Pacifica’s parks, beaches, coastline and trails.”
However, opponents of the measure, including Americas Best Value Inn manager Carlos Patel, wrote in the ballot argument against Measure M that raising the tax “will make our city a less competitive destination compared to neighboring areas” and that higher costs could lead to lower occupancy rates at hotels.
Menlo Park is the other city in San Mateo County proposing a transient occupancy tax increase on the Nov. 5 ballot with Measure CC, which would increase its rate from 12% to 15.5%.
Several other cities in the county are proposing sales tax increases or changes to their business license taxes, including Half Moon Bay, Colma, Redwood City, Belmont, Foster City and South San Francisco.