Calistoga Council debates 10-year tax increase proposal amidst hotelier concerns

Concerns over a proposed tax increase and a lengthy contract renewal dominated the Calistoga City Council meeting on December 11, 2024. Council members expressed significant reservations about extending their participation in the Napa Valley Tourism Improvement District (NBT ID) for another ten years, particularly in light of potential economic volatility.

Councilman Cooper led the charge, voicing apprehension about the implications of a one percent tax increase on local lodging businesses. He emphasized the need for flexibility, suggesting that a shorter contract term of five years would better accommodate changing economic conditions. “If we’re trapped in a 10-year agreement, it doesn’t give us the ability to adjust or adapt,” he stated, highlighting the concerns of local hotel operators who fear that increased taxes could deter guests.

Councilmember Gift echoed these sentiments, stressing her role in representing the interests of local hotels. She questioned the process for exiting the contract, noting that it would require a district-wide vote weighted by financial contributions. Gift also raised concerns about the fairness of the proposed tax structure, which she argued disproportionately affects smaller hotels.

The discussion revealed a broader unease among council members regarding the marketing strategies employed by the district. Councilman Eisberg pointed out that the promotional materials seemed to favor larger resorts, leaving smaller establishments overlooked. He called for a more equitable approach to marketing that would benefit all local hotels.

As the council deliberates the future of their participation in the NBT ID, the outcome remains uncertain. The potential tax increase and lengthy contract term are set to be revisited, with council members advocating for a more balanced and responsive approach to tourism funding that considers the diverse needs of Calistoga’s hospitality sector.