"San Jose city leaders are moving ahead with a June ballot measure to raise hotel taxes, seeking to generate millions of dollars for critical services amid budgetary woes. With the city already forced to cut previously approved services and institute a hiring freeze to rebalance this year's budget, next year promises to be even more challenging, as San Jose faces an estimated potential shortfall of $55 million to $65 million, due in part to the sluggish economy and stagnating revenue."
"After gauging voter interest in a variety of tax or bond measures, San Jose will pursue a 2% increase in transient occupancy taxes, which city staff says could generate approximately $10 million in annual revenue without reducing the competitiveness of its lodging industry. This is part of a broader strategy to strengthen the city's fiscal foundation and protect essential services to our community, Assistant City Manager Lee Wilcox said."
San Jose plans a June ballot measure to increase the transient occupancy (hotel) tax by 2%, expected to generate about $10 million annually. The tax increase aims to shore up a structural fiscal shortfall amid an estimated $55–65 million projected gap next year driven by a sluggish economy and stagnating revenue. The city already cut approved services and imposed a hiring freeze to balance the current budget. San Jose operates with a relatively low tax base and the fewest full-time employees per capita among the state's largest cities, stretching departments and leaving them vulnerable to growing demands. A 2024 parcel tax for parks was declined, leaving a parks infrastructure backlog over $500 million.
Read at www.mercurynews.com
Unable to calculate read time
Collection
[
|
...
]