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File Number: 17-431 <br /> <br />In summary, staff estimates that the above modifications to the City’s business license tax <br />which align the taxes collected with the economic priorities of the City could generate more <br />than $800,000 annually, while simultaneously reducing the tax burden for approximately 2,300 <br />small businesses located in San Leandro. <br /> <br />Overview of Increase in Transient Occupancy Tax - $235,000 is expected through June <br />30, 2017 <br />The City’s previous transient occupancy tax (TOT) was 10%, which is charged to travelers <br />when renting overnight accommodations of a limited duration in a hotel, inn, tourist home or <br />house, motel or other lodging located within San Leandro. Other communities in the region <br />have established higher rates, including the cities of Oakland and San Francisco, each of <br />which presently have TOT rates of 14%. In addition, the redevelopment of the San Leandro <br />shoreline area is expected to result in the creation of at least one new hotel in San Leandro, <br />which could provide an important source of additional TOT revenue in the future. An <br />additional $400,000 in annual revenue is anticipated, with the potential for greater increases in <br />the future as new hotels are constructed. <br />Conclusion <br />In total, Measures OO, PP, and NN will generate an estimated $735,000 through June 30, <br />2017. This is based on six months unaudited receipts; approximately $310,000 quarterly <br />receipts are accrued and expected to be received at the end of July. <br /> <br />PREPARED BY: David Baum, Finance Director, Finance <br />Page 3 City of San Leandro Printed on 7/13/2017 <br />241