Shall city charter be amended to increase transient occupancy tax rate limit from six percent to nine percent?

Summary:

The city imposes a tax on the privilege of occupying rooms or spaces in hotels or other transient lodging structures. The city charter provides that revenues from this transient occupancy tax must be used for:

(1) Enhancement and beautification of vehicular and pedestrian entrance-ways to the city;

(2) Urban beautification generally;

(3) Improvements to or operation of major tourist attraction or cultural facilities;

(4) Activities performed directly by the city or through contracts which promote use of Salem for conventions, conferences, seminars or for general tourism.

The charter currently limits the tax rate to six percent of the occupancy charge. This amendment would increase the tax rate limit to nine percent of the occupancy charge. It would take effect on July 1, 1999.