Nevada City Chamber of Commerce requests percentage share of TOT taxes
Leaders of Nevada City Chamber of Commerce, at a budget workshop at City Hall Wednesday, requested that city staff retain a percentage formula when it comes to future transient occupancy tax sharing with the nonprofit organization. “The Chamber’s concern is that a fixed amount will deny us any participation in the imminent growth resulting from our strenuous effort over the last few years to assist our lodging members in growing their businesses,” Dave Iorns, the president of Nevada City Chamber of Commerce, wrote in a letter addressed to city staff and council members.
According to Cathy Whittlesey, executive director of Nevada City Chamber of Commerce, the city has given the chamber 8 percent of its annual TOT taxes for the last 20 years. But the proposed 2016-2017 fiscal year budget replaces the percentage formula with a fixed rate of $22,000.
“We have worked hard to promote the town, and get people to spend the night to increase TOT taxes,” Whittlesey said, adding, “the chamber appreciates the support the city has given us, but we would like to stay with the percentage formula, instead of a fixed rate.”
Whittlesey said the chamber is also willing to adjust the percentage of the split to 7.5 percent with a review in three years as a compromise with the city.
According to the staff report, the TOT tax for the upcoming fiscal year is projected to increase 20 percent from fiscal year 2015-2016 due to a hike in collections and the anticipated surge in TOT taxes after the start-up of the Inn Town Campground.
The city anticipates drawing around $331,000 in TOT taxes for the upcoming fiscal year. If the chamber stays with the 8 percent formula, it could receive $26,480.
In a presentation in front of the council, Assistant City Manager Catrina Olson said the money the city saves by using the fixed rate will go into the city general fund. She also said the city staff is working to put together a partnership program with businesses, which will help bring in additional revenue for the chamber.
The budget for fiscal year 2016-2017 will be adopted during a meeting on June 8, Olson said, and the chamber’s request will be added into the meeting agenda for consideration.
To contact Staff Writer Teresa Yinmeng Liu, please email email@example.com, or call 530-477-4236.
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