| Tweet |
Custom Search
|
|
|
||
 City of Solana Beach
Section 2
Shoreline and Coastal Bluff Management Strategies Draft MEIR
Project Description
Sales Taxes
The State Legislature may increase statewide sales and use taxes, and counties may
increase local sales taxes for special purposes up to an aggregate total of 1 percent. Only a
few cities in the state have obtained special state legislation to levy supplemental sales
taxes. If the sales tax is used for a special purpose, a two-thirds voter approval is required.
If the tax is for a general purpose, a simple-majority vote is required. The City of Solana
Beach raised $2.11 million in sales tax revenue in FY 2000-01 with a 7.75 percent tax rate,
of which the City receives 1 percentage point. A 25 basis point increase would generate
$528,000 additional revenue per year, equivalent to a capitalized value of approximately
$7.3 million assuming 30-years at 6.5 percent.
Transient Occupancy Taxes (TOT)
This tax is charged to hotel guests as a percentage of room rates. Currently, the City of
Solana Beach currently charges a 10 percent hotel occupancy tax rate to yield $545,000 per
year in FY 200-01. Increasing this rate by 200 basis points to 12 percent, which would still
be within the range of TOT rates that cities charge in California, would generate
approximately $0.1 million per year, equivalent to a capitalized value of approximately $1.52
million assuming 30-years at 6.5 percent.
Utility Users Tax
Many cities levy a utility users tax, which is assessed on all utility users within the
jurisdiction. The City of Solana Beach currently does not levy such a tax. A majority of
voters would have to approve this tax for general purposes, and two-thirds would have to
approve the tax for a specific purpose.
Real Property Transfer Tax
The County levies a real property transfer tax of $1.10 per $1,000 of assessed valuation
when a property is sold and transferred. The City levies a $0.55 transfer tax per $1,000 of
assessed valuation that is credited against the County's levy. Solana Beach generated
$100,000 in real property transfer tax revenue in FY 2000-01. Some cities in California levy
a "non-conforming" tax, at a rate above $0.55. A $3.00 rate per $1,000 in Solana Beach, for
example, would yield approximately $0.45 million per year, equivalent to a capitalized value
of approximately $6.2 million assuming 30-years at 6.5 percent. This tax would require a
majority vote approval if raised for general use, and two-thirds if designated for a specific
use.
Franchise Fees
The City of Solana Beach collects approximately $290,000 from franchise fees levied on
various utilities. State statute limits payments from gas and electric franchises to General
Project No. 323530000
Page 2-47
|
 
|
|
|
||
