This is an archive of a past election.
See http://www.smartvoter.org/ca/rv/ for current information.
LWV League of Women Voters of California Education Fund
Smart Voter
Riverside County, CA November 8, 2005 Election
Measure H
Admission Tax
City of Indian Wells

1,558 / 81.96% Yes votes ...... 343 / 18.04% No votes

See Also: Index of all Measures

Results as of Jan 28 2:43pm, 100.00%% of Precincts Reporting (2/2)
Information shown below: Impartial Analysis | Arguments |

Shall Ordinance Bill No. 2005-14 be adopted to approve an increase in the City’s Admission Tax on patrons attending entertainment events from the current maximum of five percent (5%) to a maximum of ten percent (10%), subject to authorization for the City Council to annually decrease or increase the Admission Tax within the ten percent (10%) maximum tax rate?

Impartial Analysis
In 2000, the voters of the City of Indian Wells (“City”) approved an admission tax in the maximum amount of five percent (5%) of the charge for admission to specified events. Proposed Measure “H” would increase the maximum allowable admission tax from the current five percent (5%) to ten percent (10% ). The admission tax would remain five percent (5%) for calendar year 2006. The City Council would be authorized to either decrease or increase the admission tax for any calendar year, provided that the tax may not exceed ten percent (10%).

The admission tax is paid by any person who pays an admission charge to attend any entertainment, amusement or recreational activity in the City. Typical events subject to the admission tax include sporting contests, athletic events, exhibitions, concerts, lectures, theatrical and musical performances, fairs, and festivals if an admission is charged. Events held by non-profit organizations are exempt. Thus, the tax does not apply to events held by a nonprofit country club, social club or tennis club. Nor does it apply to events held by schools or governmental entities. The tax is not applied to complimentary tickets or event sponsors.

The revenues received from the tax can be used for any municipal purpose. The measure will take effect only if it is approved by a majority of the Indian Wells electors voting on the measure.

By: Stephen P. Deitsch

City Attorney
City of Indian Wells

 
Suggest a link related to Measure H
Links to sources outside of Smart Voter are provided for information only and do not imply endorsement.

Arguments For Measure H
The admission tax is an important, needed revenue source for the City of Indian Wells enabling the City to continue providing quality public services to its residents.

The Pacific Life Open is the 5th largest tennis tournament in the world. The economic impact to the Coachella Valley from the tournament exceeds $100 million per year. As a City that depends on tourism revenue, the tournament is extremely important to our local economy. For that reason, the City of Indian Wells has spent $5.7 million to support the tournament over the last six years. More funds will likely be spent to acquire land in an effort to keep the tournament from moving to China. The proposed increase in the admission tax will enable the City to be repaid for its financial support of the tournament. Additionally, the proposed admission tax provides a way to diversify City revenues and pay for local public services without having to directly tax residents.

The City Council is seeking authorization to increase the tax from the current 5%up to a maximum of 10%, as needed, to reimburse the City for its financial support of the tennis tournament. The proposed increase has the following effect, for example, on a $20 ticket:

5% (current tax) $20 ticket = $1.00 tax
At 6%, $20 ticket = $1.20 tax
At 7%, $20 ticket = $1.40 tax
At 8%, $20 ticket = $1.60 tax
At 9%, $20 ticket = $1.80 tax
At 10%, $20 ticket = $2.00 tax

The proposed admission tax is fair, reasonable and necessary to keep the tennis tournament. It provides diversified and stable future City income, funding for local public services and improvements, and is not a tax burden to local residents. VOTE YES on the admission tax.

By:

Ed Monarch,
Mayor

Conrad Negron, Sr.,
Mayor Pro Tem

Robert A. Bernheimer,
Council Member

Mary T. Roche,
Council Member

(No arguments against Measure H were submitted)


Riverside Home Page || Statewide Links || About Smart Voter || Feedback
Created: January 28, 2006 14:43 PST
Smart Voter <http://www.smartvoter.org/>
Copyright © League of Women Voters of California Education Fund   http://www.lwvc.org
The League of Women Voters neither supports nor opposes candidates for public office or political parties.