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Arcata staff outlines hotel tax revenue‑sharing program; council gives preliminary support
Summary
City staff presented a model for a transient occupancy tax (TOT) revenue‑sharing incentive aimed at encouraging hotel new construction and renovation. Council members signaled general interest; no ordinance or agreement was approved tonight.
City officials presented an introductory staff report on a possible transient occupancy tax revenue‑sharing program designed to encourage new hotel construction and renovations in Arcata. Assistant City Manager Tabitha Miller framed the proposal as an early-stage concept and asked the council whether they were interested in staff pursuing a program design.
The program would use a share of incremental TOT — the local tax collected on accommodations inside city limits — to fill identifiable financing gaps for developers. “The transient occupancy tax is also known as the hotel tax,” Miller said, explaining the concept of using only incremental revenue tied to a new or renovated property rather than diverting existing collections.
Miller reviewed examples from other California cities and described typical program…
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