Some desert cities oppose proposed tourism tax law

State Sen. Mike McGuire said Senate Bill 1102 would create a standardized system of collecting transient occupancy taxes, TOT, for California cities and counties. The state would then disburse the tax revenue from hotels and vacation rentals back to them making it more consistent and effective.

However, city leaders in Rancho Mirage and Desert Hot Springs said they rely on TOT and worry the bill would cost them money.

“It’s the idea of the state now taking over a function of a city that is totally inappropriate. We have our own guidelines, our own set of rules,” said Rancho Mirage Mayor Ted Weill.

“TOT represents about $1 million of city revenue a year, and I just can’t see the sense of it going to Sacramento first on a promise that it’ll come back here. It’s better left at home,” said Desert Hot Springs Councilman Russell Betts.

Attorney Steve Quintanilla said the bill would allow the state to siphon off a share of the tax money for administrative costs.

“It makes life more difficult for us as a city and we simply can’t afford to have those TOT dollars lost,” said Betts. “Last time state reached in and grab our money, it put us in a heck of a mess. They should mine their business and we’ll take care of ours. Thank you very much.”

The two cities are writing letters opposing the bill before it moves forward.

Local State Senator comes out swinging

State Senator Jeff Stone (R-28th district) came out swinging against the proposed bill.

“SB 1102 is basically an anti Airbnb bill,” he said. “The state is trying to grab revenue.”

Stone pointed to the cities of Indio and La Quinta, which have local ordinances in place for homeowners to facilitate short and long-term rentals.

“Historically that’s been a revenue source that’s been allocated for local municipalities,” he said.

“This program has enabled so many people to keep their homes, and augment them during this very challenging economy which we are still crawling out of. I won’t be supporting this (bill).”

“By the time the state gets through all the bureaucracy,the cities will be lucky to get 10 percent of this,” Stone said.