To: Honorable Mayor and Members of City Council
From: Rick Tooker, Community Development Director
Prepared By: Lark Ferrell, Housing Manager
TITLE:
Title
Transient Occupancy Special Tax for Affordable and Workforce Housing - Proposed for Voter Approval at the November 6, 2018 General Municipal Election
LABEL
RECOMMENDED ACTION:
Recommendation
Approve first reading and introduction of an ordinance amending Napa Municipal Code Tile 3 by enacting a new Chapter 3.22 to establish a one percent Transient Occupancy Special Tax for Affordable and Workforce Housing.
Body
DISCUSSION:
Affordable and workforce housing has been identified as a high priority by both the community, in recent communitywide surveys, and by City Council. Market rents are becoming increasingly unaffordable for lower income households and median sales prices of homes are becoming out of reach for even moderate-income homebuyers. Employers have identified lack of affordable housing as an issue in recruiting and retaining employees. Visit Napa Valley, the official tourism organization for the Napa Valley, has asked each jurisdiction in Napa County to place a special 1% transient occupancy tax on the November 6, 2018 ballot to fund affordable and workforce housing. Currently, it appears the County of Napa, Town of Yountville, and the Cities of American Canyon, Calistoga, and Napa are each moving forward on this effort.
On May 15, 2018, after hearing a report on the proposed tax, City Council directed staff to prepare an ordinance to enact this one percent transient occupancy tax for affordable and workforce housing. Because this would be a special tax, with all revenue restricted to the sole purpose of providing programs and services for affordable and workforce housing, it would require a 2/3 voter approval in the November 6, 2018 election to go into effect.
The proposed 1% transient occupancy special tax ("TOT") would be levied on visitors at "hotels" (defined in the ordinance...
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