Sacramento County Hotel Tax Revenues Stagnant

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(Sacramento, CA)
Monday, September 12, 2005

The Board of Supervisors this week is holding final budget hearings for fiscal year 2005-2006 and Paul Hahn, assistant to the County Executive, says thanks to a robust real estate market, the budget looks good.

“As we all know we’ve seen the values of our homes going up. That certainly has helped the property tax revenues and so there is more revenue to fund county-wide services.”

In the past, when the budget was tight, the county had to dip into hotel tax revenues – which total about $6 Million - to help offset cuts to the General Fund. Those funds are supposed to go to civics and cultural groups.

Hahn says those organizations will get the funding this year, they just won’t get more funding. “Almost exactly the same as last year, same groups, with the same amount of money.”

He says that’s because while the General Fund has been growing the hotel – or Transient Occupancy Tax – has stayed the same. “The TO has not been growing very strong so we are essentially keeping a very status quo in the groups that are funded through the Transient Occupancy Tax.”

Those groups include The Sacramento Theater Company, Music Circus, The Sport’s Commission and the Convention and Visitors Bureau.