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Planning and Building Department, Economic Development Division, recommending the Board approve and authorize the Chair to sign the following two-year Funding Agreements for the issuance of Transient Occupancy Tax funding to promote tourism, entertainment, business, and leisure travel in the County, for a total two-year commitment of $1,221,880:
1) Agreement 5734 with the El Dorado Hills Chamber of Commerce, with a not-to exceed amount of $220,640;
2) Agreement 5736 with the El Dorado County Chamber of Commerce - Film Commission, with a not-to-exceed amount of $301,500;
3) Agreement 5740 with the El Dorado County Chamber of Commerce - Visitors Authority, with a not-to-exceed amount of $481,840;
4) Agreement 5738 with the Lake Tahoe South Shore Chamber of Commerce, with a not-to-exceed amount of $157,900; and
5) Agreement 5739 with the Tahoe Prosperity Center, with a not-to-exceed amount of $60,000.
FUNDING: Transient Occupancy Tax (General Fund)
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DISCUSSION / BACKGROUND
The Transient Occupancy Tax (TOT), or Hotel/Motel Occupancy Tax, is a tax imposed on the daily rental price of a room in a lodging facility, including vacation home rentals, when used by visitors staying in the unincorporated portions of El Dorado County for a period of 30 days or less. Neither the tax code nor El Dorado County Ordinances require any specific use of TOT funds; however, at least 51% of TOT funds have been directed to the Planning and Building Department, Economic Development Division (Economic Development), to offset operational expenses as well as other various tourism related expenses, including funding agreements to promote tourism and economic development.
On December 10, 2019 (File No. 19-1818, Item No. 45), the Board approved a new Budget Policy (B-16). Policy B-16, Section II, Item No. 13, states that “Transient Occupancy Tax revenue shall be directed toward the impact of tourism and economic development, with consideration for support of tourism and promo...
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