Two percent TOT funds Tahoe City project, future money slated for Kings Beach

The existing 2 percent Transient Occupancy Tax (TOT), which is up for renewal on the June 5, 2012 ballot, has funded a number of North Lake Tahoe public improvement projects and services since voters first authorized it in 1996.

The renewal, called Measure F, is not a tax increase and, if passed, would continue to be paid by lodging guests only via the TOT bed tax when they spend the night in North Lake Tahoe. North Lake Tahoe residents would not be taxed under Measure F.

One of the most visible projects in our community that benefited from this TOT revenue is the $14 million Tahoe City Beautification Project. The redevelopment of Tahoe City’s historic downtown corridor was completed in 2001 and received $1.7 million of 2% TOT dollars.

A similar venture is slated for Kings Beach with the $48.6 million Kings Beach Commercial Core Improvement Project, with construction beginning this summer and completion scheduled for summer 2014. The Kings Beach project will have received $6.85 million of the 2% TOT dollars. This funding will primarily have been used for planning and construction of streetscape elements and esthetics, such as benches, walkways, lighting, landscaping, bike racks, trash receptacles and signage.

“What’s important to note about both these projects (Tahoe City and Kings Beach) is that the 2% TOT dollars were leveraged to secure additional monies from local, state and federal organizations that helped pay for the redevelopments,” said Ron Treabess, Director of Partnerships and Community Planning, of the North Lake Tahoe Chamber/CVB/Resort Association.
According to Treabess, since 1996 approximately $30 million of the 2% TOT has been put directly into the North Lake Tahoe region and leveraged to generate $160 million for projects the area might not otherwise afford.

The Tahoe City Beautification Project was collaboration among many private donors and the North Lake Tahoe Chamber/CVB/Resort Association, the Tahoe City Public Utility District and Placer County Department of Public Works, who were all honored with the California Department of Transportation’s “2002 Excellence in Transportation” award for their work.

The Tahoe City Beautification Project’s most noticeable enhancements are sidewalks, extensive landscaping, rockwork and streetlights, which have made Tahoe City a more pedestrian-friendly destination with a vibrant commercial core. Less observable improvements, such as drainage features that reduced runoff into the lake, were also a significant part of the redevelopment’s environmental project strategies.

Some of the other public improvement projects and services that 2% TOT dollars have helped pay for and maintain are Squaw Valley Community Park, North Tahoe Regional Park, Commons Beach, Tahoe Vista Recreation Area, as well as bike trails in Tahoe City, Midway Bridge to Squaw Valley and along the West Shore.

In terms of transportation, 2% TOT dollars have been used for the North Lake Tahoe Express Airport Shuttle, winter and summer Free Night Rider Shuttles, seasonal traffic management programs, improved Tahoe Area Regional Transit (public bus) service and a welcome center at the Reno-Tahoe International Airport.

According to Treabess, if the existing 2% of TOT, Measure F, is not renewed, North Lake Tahoe will lose approximately $2 million in revenue per year for public improvement projects and services, which includes the maintenance of existing facilities.

The approval of Measure F requires a 50% + 1 affirmative vote by the voters of North Lake Tahoe on the June 5, 2012 ballot. If passed, the funding would continue over the next 10 years until 2022 and would still require an annual independent audit of all funds and expenditures by a non-county, private CPA firm.

North Lake Tahoe currently has a 10% TOT, 2% of which is for public improvement projects and services. It’s important to note that it’s just the 2% that is up for renewal. The remaining 8% is what is collected by Placer County and does not require voter approval. Other mountain destinations’ TOT ranges from 9% to 13%.

To learn more about Measure F, receive educational brochures or to host a Measure F presentation at your business, service club or group function, contact Sandy Evans Hall at 530-581-8739 or via email sandy@PureTahoeNorth.com.

For more information about the North Lake Tahoe Chamber/CVB/Resort Association and Measure F, click to www.nltra.org.