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Tuesday, July 22, 2008 3:30 PM PDT

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Selma city officials consider new tax for visitors

The outcome remains to be seen, but Selma's city council seems to be in favor of collecting more money from out-of-town guests through an increase in the tax at local motels.

The money received from the so-called "bed tax" is significant for Selma residents because it goes into the city's General Fund -- of which just over 63 percent pays for services in the areas of police and fire. Residents won't be paying this tax, but they will see benefits from it, city officials say.

"It's a good revenue source and it also brings us in line with what other cities around us are doing," said Selma City Manager D-B Heusser.

During their regular meeting on Monday, July 21, the Selma City Council unanimously approved an action to put the occupancy tax increase up for a public hearing on Monday, Aug. 4.

If passed then, the ordinance will be put on the ballot for the upcoming Nov. 4 election.
The increase, from the current 6 percent up to 10 percent, is estimated to bring in an estimated extra $190,000 per year into the city's general fund. Currently, the tax raises around $260,000 to $285,000. This increase could bump the total revenue up to $475,000.

This tax was first adopted by the City of Selma in 1964 and has been set at a rate of 6 percent since 1982.

For his part, Heusser said that the increase in the tax is the best way for the city to raise money without effecting citizens.

"This is the least painful one (tax) for our citizens. Our citizens don't pay for it," Heusser said.

Nonetheless, the city will have to spend some general fund money to get the ordinance on the ballot. That cost is estimated to be between about $5,000 and $6000, according to City Attorney Neal Costanzo.

Still, council members like Dennis Lujan think the increase is worthwhile for the city.

"It would be new money for the City of Selma ... it would not impact the citizens of Selma," he said.

A public hearing on the ordinance to increase the transient occupancy tax from 6 percent to 10 percent will be held during the Selma City Council's regular meeting at 7 p.m. on Aug 4. The council meets in the chambers at City Hall, located at 1710 Tucker St.

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