The county of San Luis Obispo is forming a countywide tourism district. This district will be funded by an additional 1 percent transient occupancy tax. This additional tax will raise about $3 million annually. There already is an 11 percent transient occupancy tax. The math tells us the 11 percent tax is bringing in $33 million annually.
The 11 percent tax means guests coming into our county are spending $300 million in rent. They are spending another $200 million on groceries, restaurants, other retail establishments and entertainment. There is an influx of cash each year totaling half a billion dollars! And the county wants to put an additional tax on these visitors?
The county wants these visitors to stay longer. Anyone who has taken Economics 101 knows that the higher the price charged, the less is purchased. If the county really wants to have this group of people stay longer, the current tax should be reduced!
Think about going into a retail store. You purchase an item and look at the receipt. There is an additional charge. You are told the additional charge is for the store to do additional advertising. Think you will go back into that store?