Indian Wells, Palm Desert City Council approve hotel tax ballot measure
UPDATE: 6:09 p.m.
This week, Indian Wells city leaders voted to place a proposal on this year’s ballot regarding a one percent spike in their hotel tax.
If approved, the measure would generate hundreds of thousands of dollars.
A proposal to raise bed taxes will be on the ballot for two desert cities this November.
Indian Wells residents will vote proposing to raise their tax from 11.25 to 12.25 percent, while those in Palm Desert will vote on whether to raise their bed tax from 9 to 11 percent.
Palm Desert voters did not go for the tax raise in 2014, but Mayor Bob Spiegel said their measure has a better chance this time around, being more defined to benefit first responders contracted with the city.
“Police and fire are more than 50 percent of our general fund,” Spiegel said. “It’s the first time it’s ever happened. And their salaries are going to increase in the years to come. Consequently, if we want to maintain the same kind of police service and fire service for our residents, we need to look at another way to get some revenue.”
As a means of keeping residents safe, while saving their money.
“It didn’t pass because people didn’t understand it, but now it’s all different,” Spiegel said. “Now, it’s for police and fire strictly. And that’s what we plan on using it for.”
Spiegel said the measure would create $2 million for the city of Palm Desert.
The city of Indian Wells, which raised their hotel tax by 2 percent in 2011, said the 1 percent raise this November is needed to fund public services.
KESQ/CBS Local 2 reached out to both hotel owners and city leaders in Indian Wells, but they declined to talk on camera about the ballot measure.
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ORIGINAL STORY: 12:55 p.m.
The Indian Wells City Council voted 3-1 on Thursday to place a 1 percent hotel tax increase on the November ballot, and the city of Palm Desert has approved the same measure for its TOT (Transient Occupancy Tax).
If approved by voters, the Indian Wells Hotel Tax Rate Measure would raise the city’s Transient Occupancy Tax from 11.25 to 12.25 percent, generating around $630,000 annually for city services, according to a city staff report.
KESQ and CBS Local 2’s Zak Dahlheimer spoke to officials in Palm Desert to hear more about the proposal, including the money that would be collected, and what it would be used for. You can watch the full report on CBS Local 2 at 5:30 p.m. and on KESQ News Channel 3 at 6 p.m.
According to Indian Wells city officials, the revenue generated by the measure would go toward public safety, public works, planning and building, water conservation, community activities, the Indian Wells Golf Resort and more.
Mayor Dana Reed cast the lone no vote at a special council meeting while Councilman Ted Martens was absent.
