Council members: Public seems to favor renewal of hospitality tax

  From what Yuma's city council members have heard in discussions with residents, most people are in favor of renewing the soon-to-sunset hospitality tax, but some would prefer a few changes.

   There apparently is broad support for using the tax for parks, Councilman Ross Hieb reported during the Yuma City Council roundtable work session Tuesday afternoon. However, he clearly got the message that residents don't want the tax to be used to build an events center, nor for private development, he added.

  "I've gotten a lot of e-mails and been stopped in the store," Hieb said, "and 98 percent would retain the tax. The issue is what it would be like and how much it would be."

  The 2 percent hospitality tax is applied to hotels, restaurants and bars to fund parks and recreation projects, the promotion of tourism and riverfront activities. Currently, it helps fund the Yuma Civic Center, Desert Sun Stadium, Desert Hills Municipal Golf Course and the National Heritage Area. Yuma Visitors Bureau, Yuma Film Commission and Heritage Festivals also receive funding.

  The special tax, first approved in 1970 and renewed in 1993, is due to sunset in 2009. Voters in November rejected a measure to extend the special tax to 2034 and raise it to 2.5 percent.

  The council has since been revisiting the tax and considering whether to again ask voters to keep it alive. Two potential options are being considered for a ballot issue in the spring. Either one would extend the tax for 20 years, with revenue to support tourism, the riverfront and parks and recreation. The second option would retain the tax at 2 percent for bars and restaurants and extend it to rental cars while raising the rate for hotels to 3.5 percent.

  "One-third would like to see it stay at 2 percent," Hieb said. Others support raising the rate for hotels. "Some would like to see it go away, but that is a true minority."

  Councilwoman Leslie McClendon agreed there is support for the tax. However, she added, she believes the tax and what it goes toward need to be more clearly explained.

  Councilman Cody Beeson said he has heard concerns about funding going to the Heritage Area. "Some think that shouldn't be part of it."

  Mayor Larry Nelson noted that the Yuma West Wetlands, with the Stewart Vincent Wolfe Creative Playground, trails and other recreational features, is one of the most used parks in the city. And it is part of the Heritage Area.

  City Administrator Mark Watson said he has met with local hoteliers about the possibility of raising the hotel tax. "They don't mind more tax, but they need to see some benefit. They need get to heads in beds. They need more events (to bring people to Yuma) and clearly that is the role of the Yuma Visitors Bureau."

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Joyce Lobeck can be reached at
jlobeck@yumasun.com or 539-6853.