Look Carefully at Measure J in Humboldt County, Urges Guest Column

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The Humboldt Lodging Alliance (HLA) asks voters to look carefully at Measure J on the June 7th ballot and vote no.

The measure would increase the Transient Occupancy Tax (TOT) from 10 percent to 12 percent on lodging properties, campgrounds, and RV parks in the unincorporated County, making the tax rate higher than the six incorporated cities within the county and surrounding counties. This tax would make lodging properties located in the unincorporated areas of Humboldt at a disadvantage to those properties located in the incorporated cities and towns. This is a classic example of taxation without representation.

Like other businesses and industries in the County, Humboldt hoteliers think now is not the time to raise taxes. There’s too much uncertainty in the economy, especially with rising gas prices and inflation as Humboldt recovers from the pandemic.

The wording of Measure J suggests it will support a variety of worthy causes, such as rural emergency services, children’s mental health, repairing county roads, emergency communications systems, and the arts. However, the language is misleading. 

While County staff and elected officials have said that the money would go to specific purposes, it would go into the unrestricted general fund, which means the County could use it for any purpose. There is simply no law or ordinance to ensure the best use of the TOT funds. 

Measure J also misrepresents the projected revenue, stating that it would generate about $3 million annually. That estimate includes the ten percent TOT already collected. The amount raised by Measure J would likely only be between $600,000 and $800,000 annually.

The most publicized benefit mentioned by Measure J allies is funding for the arts. Even with a discussed workgroup formed by the Board of Supervisors to recommend the best use of funds from Measure J, there is no guarantee that the County will fund the arts past the first year of this TOT increase. 

HLA fully supports the Arts and Culture communities and understands they help bring visitors to Humboldt County. This measure, again, does not guarantee them any funding, nor how much funding they will receive, especially since the estimated increase of $600,000 – $800,000 will be spread between five to seven other beneficiaries.

The county staff’s track record of managing earmarked funds isn’t outstanding. Consider Project Trellis, in which millions of taxpayer funds were meant to help market Humboldt’s cannabis industry. Years later, it remains mired in problems, and there’s a lack of progress.

The HLA urges voters to reject this new tax, given that the County of Humboldt is struggling with tough questions regarding fiscal management. It’s not advisable to give the government more money at this time. 

The HLA has begun a three-year comprehensive brand development and marketing program that will promote Humboldt County’ drawing attention to all the fantastic features here, including arts and culture.

The HLA, the official owner’s association for the Humboldt County lodging industry, has made significant investments through its community grants program in cultural projects throughout Humboldt County, including art events, music festivals, and seasonal activities. And it’s the primary financial sponsor of the new Redwood Sky Walk. 

A non-profit group based in Eureka, California, the association is dedicated to promoting responsible tourism among the many natural and cultural assets of Humboldt County. Its guest website is www.visithumboldt.com.

John Porter, Managing Partner – Benbow Hotel & Resort