Loveland voters are being asked now for a third time whether a “lodging tax” should be imposed on anyone staying in temporary housing in Loveland. Loveland’s City Council narrowly passed a measure in late August to place the proposed tax on Loveland’s November 3, 2009 municipal ballot. The election will be conducted by mail.
Read the LovelandPolitics.com story from when it was approved by council.
The lodging tax imposes a 3% tax on the cost of any accommodations within Loveland city limits for people renting housing for any period less than 30 days.
The ballot language claims the tax will raise $400,000 annually that will be used by Loveland “FOR THE PURPOSE OF RAISING FUNDS TO PROMOTE TOURISM, CONVENTIONS AND RELATED ACTIVITIES WITHIN THE CITY BY MARKETING THE CITY.”
We oppose the ballot measure because it is built upon a false premise perpetuated regularly by this city council majority.
The false premise is that every new revenue source is simply “profit” for the city. As proposed, the lodging tax can be used only to promote Loveland through public relations campaigns while the critical government services don’t have enough funds today to expand commensurate with our city’s growing population.
Mayor Gene Pielin said he wants to see a fancy advertising campaign in his favorite travel magazine for Loveland while other advocates on council plan to steer the money into Loveland’s Chamber of Commerce visitor’s center.
Local governments derive their taxing authority from the state’s “police powers” and are required by law to use the power to collect and spend taxes only for the purpose of promoting the health, welfare and safety of the community. The proposed lodging tax doesn’t meet this test and instead uses the city’s taxing authority simply to raise dollars for promoting certain businesses while ignoring the impact on critical city services.
Hotel guests do occasionally require local government services.
La Quinta Inn in Loveland, for example, has taxed the city’s already stressed police response time this summer by generating dozens of weekend emergency calls from nearby residents over late night band music for out-of-town wedding parties. Last weekend, the Embassy Suites Hotel hosted a gun show where Loveland Police were on-duty throughout the show and responded to an accidental gunfire incident which generated charges for reckless endangerment.
As conventions and promotions attrack increasing numbers of visitors to Loveland, our City Council has no plan to recapture or even understand how much money is spent to support the increased number of visitors in town.
As Loveland’s number of temporary residents rises so does the cost of providing all types of government services for them during their stay. Some have health emergencies while visiting Loveland while others can get into auto accidents or accidentally damage utilities while navigating local streets and increasing traffic on local streets.
Hotel guests who shop at Centerra in east Loveland will minimize the more general financial benefit of their stay to the city as much of the sales tax they pay in Centerra goes to McWhinney instead of the City of Loveland. Hotel owners who want better advertising can raise their own rates and use the money accordingly but it is not the proper role of local government to tax hotel guests for that purpose.
We do not oppose the concept of a lodging tax but do oppose one that can’t be used to support the general city services hotel guests are using. The same city council that recently approved of a budget to lay-off police officers and fire fighters now wants to further stress those services by increasing the number of transient people staying in town for business or pleasure.
Increasing the work load of Loveland’s emergency services while at the same time decreasing their funding diminishes the quality of life for everyone in Loveland and demonstrates poor long-term planning.
To propose a new tax that will not save even one police officer’s job or rehire a single firefighter is a smack in the face to the residents of Loveland not to mention first responders. Monies available for the General Fund need to be spent on improving and expanding those services most critical to Loveland residents’ health, welfare and safety.
Loveland residents should vote no for a third time against a lodging tax that at best can only be used to boost the advertising sales of a national magazine, subsidize advertising for the local hospitality industry or create a slush fund to support friends of city council members in Loveland’s Chamber of Commerce.