By
Tanya Mannes
San Diego Union-Tribune
June 4, 2008
Encinitas' two ballot measures aimed at creating a tax on short-term home rentals had mixed success Tuesday night, with one passing and the other falling just short of the two-thirds vote it needed to pass.
In other local initiatives, according to the county registrar's unofficial totals, Oceanside's $195 million school bond notched an easy victory, as did Carlsbad's charter city proposal.
In Encinitas, Propositions F and G sought to impose a tax on people who rent private homes for 30 days or less. The initiatives would have added 10 percent in tax to such rentals, equivalent to the hotel tax, effective in January.
Encinitas Mayor Jerome Stocks said Tuesday evening before the final results were available that he was “very hopeful” that both propositions would succeed.
“Of course, the concern every time you're promoting a proposition campaign is that it's easier for voters to say 'no' than to say 'yes,' ” he said.
Proposition F, which needed a simple majority to pass, levies an 8 percent occupancy tax on short-term rentals, with the money going to Encinitas' general fund, which pays for basic city services. The measure had 56 percent support with all precincts counted.
Proposition G, which needed a two-thirds vote because it earmarked money for a special purpose, would have levied a 2 percent tax on short-term rentals, with the money going into a fund for adding sand and stabilizing bluffs on the city coastline. With 65 percent of voters in favor, the measure failed.
The City Council put the measures on the ballot to make money from short-term rentals in a city where homes can rent for thousands of dollars a week in the summer. The city has projected the tax could raise up to $472,000 ayear. Supporters say the measures require short-term renters to pay their fair share for city services – such as lifeguards and law enforcement – while they're visiting Encinitas.
Opponents, including the San Diego County Taxpayers Association, say the measures are the city's latest tactic for trying to discourage homeowners from renting their houses for short periods.
Some Encinitas residents have complained about short-term renters, citing tenant noise and traffic. The city even considered banning such rentals in neighborhoods near the beach, but the California Coastal Commission said it would not allow a ban.
In Oceanside, voters supported a school bond known as Proposition H, which needed 55 percent to pass. The measure, which had 71 percent support with all 57 precincts counted, will raise $195 million by extending the term of an already-in-place school bond. The money will help complete campus renovations throughout the Oceanside Unified School District.
“We have a lot of very old schools in Oceanside that need upgrading,” said Colleen O'Harra, a former Oceanside city councilwoman who chaired the bond campaign.
There was no organized opposition to the Oceanside school bond measure.
Proposition H will not increase taxes above what Oceanside property owners are paying for a 2000 school construction bond. The 2007 tax rate to pay off those bonds was $58.35 for every $100,000 of assessed valuation.
Proposition H extends the payment schedule. The 2000 bonds are to be paid off by 2036, but with Proposition H's passage, tax assessments will be extended an additional eight to 12 years to pay off the new bonds.
In Carlsbad, Proposition D gathered enough voter support to establish a city charter, akin to a local constitution. Charters are in place in Chula Vista, Del Mar, San Diego, San Marcos and Vista. The charter needed only a simple majority, and had 82 percent support with all 67 precincts counted.
Carlsbad City Council members said a charter would give the city more authority over such governmental affairs as financing, establishing quorums and awarding contracts. Without a charter, Carlsbad is a general-law city and must follow rules established by the state Legislature.
The charter debate revolved around prevailing-wage issues. A charter city may choose to forgo requiring payment of prevailing wages – union wages – on some public projects when awarding contracts.
The San Diego County Democratic Party and the San Diego County Building and Construction Trades Council – a labor group – opposed the charter because of the prevailing-wage issue, but did not actively campaign against it.
Pro-business groups including the Lincoln Club of San Diego County, the Associated Builders and Contractors and the Carlsbad Chamber of Commerce; spent money to support the charter proposal.
Staff writers Michael Burge, Helen Gao, Bruce Lieberman and Chris Moran and freelance writer Adam Kaye contributed to this report.
Tanya Mannes: (619) 498-6639; tanya.mannes@uniontrib.com |
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