Here’s the taxing trouble with Measure U

Proponents see Measure U as a way to bolster the county's beleaguered budget, by charging tourists more to stay and play here.

But if common sense prevails, voters will again reject a proposal that's both ill-timed and ill-advised.

This is not the time for a new tax – particularly one that could take a further toll on tourism, the main engine of Tuolumne County's economic well-being.

County voters rejected this proposal in the March 2020 primary. It has reappeared as county leaders struggle to find new revenue sources for the Covid-decimated budget. But they're looking in the wrong place at the wrong time.

If approved, Measure U would increase the Transient Occupancy Tax (“TOT”) on hotels, bed and breakfasts, motels and Airbnbs in the county's unincorporated areas from 10 to 12 percent. While 2 percent doesn't sound like much, it's effectively a 20 percent tax hike – at a time when these businesses are hurting badly.

Tourism is our county's economic lifeblood: In both 2018 and 2019, tourism's value topped $260 million. These visitors already pay their fair share in lodging, restaurants, gas stations, retail stores and more.

The current 10 percent tourism tax – which hotel/motel operators collect at point of sale – last year yielded $5.2 million for the county's General Fund. A share typically goes to the visitors bureau to promote more tourism, and the balance to county services and departments.

The county's estimate that the new tax would yield an extra $1.85 million for county coffers is way off the mark. The reality is that in the past nine months, everything has changed. Like so many other local businesses, hotel and motel owners and campground and Rv-park operators have taken a brutal hit. Many are barely staying afloat. The proof is in the numbers: TOT revenues were down by 70 percent in the second quarter, with a 50 percent decrease projected for the full fiscal year.

But Measure U would do more than increase the tax on lodging. It also adds a brand-new tax on campgrounds and RV sites. Not all of them, though. U.S. Forest Service-operated campgrounds and state campgrounds such as Sonora's Mother Lode Fairgrounds would not pay the 12 percent tax, but concessionaires such as Dodge Ridge and Kennedy Meadows would have to pay it. Thus, the burden would fall unevenly and unfairly to private and concessionaire-operated campgrounds. Campsites that cost $30 today would have new 12 percent tax added – that's a 100 percent increase.

Some might say, “Just tax the out-of-towners, who cares?”

First, those visitors are just as hard-hit by this pandemic's financial devastation as we are. Like us, they are having trouble making their rent or mortgage payments, keeping their businesses alive, feeding their families, paying for health insurance. Second, the idea that only out-of-towners pay the TOT ignores the fact that many county residents frequent local campgrounds and RV parks.

These days, travelers are more budget-conscious than ever. If we change more, some may cut short their stay – or choose a different destination altogether.

Arguments that Measure U will cure the county's financial ills are wishful thinking at a time when easy answers are in short supply. Earlier this year, County Supervisor Anaiah Kirk noted the folly of passing a measure directing money to the county's General

Fund, rather than a well-structured tax dedicated to a specific use like public safety or library services.

Let's not make it harder for our businesses, residents and visitors to get through this difficult time. The day will come when tourists and their spending power return at full strength. Until then, we need business-savvy solutions that support rather than deter tourism and the many local businesses that rely on it.

Please vote no on Measure U.

Matt Bloom, Kennedy Meadows Resort & Pack Station Frank Helm, Dodge Ridge Sally Helm, Dodge Ridge Laurie Cashman, Pinecrest Lake Resort

Cindy Zelinsky, Lazy Z Resort Brett Fulkerson, Phoenix Lake Mike Albrecht, Sonora

Lyn Wilson, Confidence Steven B. Campbell Sr., Sonora