Posted: 06/29/2010 10:37:34 PM PDT
Updated: 06/29/2010 11:14:12 PM PDT
PACIFICA — The City Council will ask voters to approve a transient occupancy tax increase in November that will put pressure on Pacifica's hotels — all six of them — to help the city dig itself out of a $3 million budget deficit.
Officials portrayed the tax increase as crucial to balancing the city's deficit in the long term, even though it would only generate a modest additional take of $160,000 a year from the city's half-dozen hotels.
Pacifica faces a $15 million structural deficit over the next five years. The hotel tax would add an extra $640,000 to the city's general fund in that time.
Paul Chakkapark, owner of the Pacifica Beach Resort Hotel overlooking the ocean, said he was surprised and disheartened by the council's vote — and he plans to fight against the ballot initiative, which could hurt his business in a very tough economy.
"I think we have a hard time right now, and we need everybody's help. To increase it is not helping," he said. "We are only 15 minutes from San Francisco and customers in San Francisco come and stay with us, because San Francisco has a 14 percent tax and we have only a 10 percent tax."
Posted by Steve Sinai