Hotel Tax Proposed

Petaluma councilwoman Teresa Barrett is proposing increasing the hotel occupancy tax as a way to raise city revenue in light of a still-sluggish economy, according to an article in Sunday's Press Democrat.

“I just want to make another plea that we look at increasing the tax on hotel stays,” Barrett told the PD. “I think this is an ideal way of raising some revenue with very minimal impact in the city.”

Last year, several councilmembers proposed increasing the tax visitors to Petaluma pay for lodging or at least studying the issue, but the idea was killed after tourist-focused businesses opposed the plan.

Opponents have said that a tax increase on hotel stays would discourage people from visiting at all and lower revenue from tourism, a sector the city has tried to nurture by drawing on Petaluma's historic roots and as a gateway to the Wine Country.

Currently, there is a 10 percent tax per night on guests staying in Petaluma hotels. Another 2 percent is added for a countywide tourism fund, raising some $1.2 million a year, most of which is put in the general fund. 

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