Banning election considers doubling hotel tax


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05:11 PM PDT on Monday, October 12, 2009

By ERIN WALDNER
The Press-Enterprise

The city of Banning is asking voters to approve a doubling of the tax on hotel and motel guests at the polls Nov. 3.

If approved by a simple majority of voters, Measure L would increase the tax from 6 to 12 percent and provide a city-estimated $275,000 additional revenue each year.

"It's going to be a nice revenue producer," said Jim Smith, co-chairman of the committee backing Measure L.

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That money would go into the city's general fund and help pay for services such as public safety, road maintenance and graffiti removal. It's cash, said Smith, that replaces the cutbacks in state funding and the revenue lost as result of the weakened economy. Banning has cut $5 million from its 2009-10 budget but still faces a projected $827,000 deficit.

City hoteliers contend that increasing the tax to 12 percent will hurt business because prospective guests might choose to stay in neighboring Beaumont, where the tax is 10 percent.

Smith said he doesn't think this will happen.

There are around five hotels and motels in Banning.

Saying he was speaking on behalf of those businesses, Hiral Patel from Hampton Inn & Suites, Super 8 and Travelodge told the City Council on July 28 that a decline in occupancy rates will have a trickle down effect on other Banning businesses, such as restaurants, bars and gas stations.

Smith said he's working with the Banning Chamber of Commerce on a plan to draw more tourists to Banning. He believes the city needs to find a way to market Banning as a destination place.

Reach Erin Waldner at 951-763-3473 or ewaldner@PE.com



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