Steve Muehler (if I was Governor of California) - Plan 8: California Transient Lodging State Tax
For hotels, there are currently approximately 98,000 hotel rooms just in the Los Angeles area, with an additional 30,000 hotel rooms in San Francisco. It my estimation, there has to be at a minimum of 160,000 hotel rooms statewide in California.
There are approximately 19,000 AirBnB rentals in Los Angeles, and an estimated 50,000 “short-term rentals” in the State of California.
Right now, all transient lodging is taxed at the Local Level.
I would propose a 5% State Transient Lodging Sales Tax Statewide that will go "on top of" the already in place local Transient Lodging Taxes.
With an average of $185 per night overnight fee for AirBnB’s and Hotels in the State of California, and going with an average 50% occupancy rate state wide:
· 100,000 rentals each evening
· $185 average per night
· $9.25 in State Tax per rental per night
· $925,000 USD per night in State Tax Revenue
· $337,625,000 in State Transient Lodging Tax Revenues
The Score so far on State Budget:
Plan One: Eliminate California State Income Tax
Resulted in $100 Billion Deficit
Plan Two: Decriminalize Prostitution in California
Resulted in $15 Billion in State Revenues
Still have a $85 Billion Deficit, but we have no State Income Taxes and we have Decriminalized Prostitution in California.
Plan Three: California Mortgage Tax
Resulted in $6.75 Billion in State Revenues
Still have a $78.25 Budget Deficit.
Plan Four: California Real Estate Transfer Tax
Resulted in $30 Billion in State Revenues
Still have a $48 Billion Budget Deficit.
Plan Five: Ending the California Homelessness Epidemic
Resulted in increased state spending, followed by State Budget Savings over many years. Total costs, I could not even come up with a guess, but would try to work within the current budget by utilizing current state land owned, governmental facilities, and current government programs. I am calling it “Even Steven”
Still have a $48 Billion Budget Deficit – but we have a No Income Tax State, Prostitution is Legal, the Wealthy are Paying their Fair Share, and the streets are less cluttered with homeless.
Plan Six: Ending the State Corporate Income Tax.
Resulted in a loss of approximately Eleven Billion USD in Annualized Tax Revenues.
$59 Billion USD Deficit
Plan Seven: Increasing the Gasoline Tax.
Resulting in an additional $10 Billion USD in Tax Revenues.
Back to a $49 Billion USD Tax Deficit. But, no State Income Taxes, no State Corporate Taxes, Homelessness is under control and we have legal Prostitution.
Plan Eight: California Transient Lodging Tax
Resulting in $337,625,000 in Tax Revenues
Still have a $48.7 Billion USD Tax Deficit.
So, Plan Eight, California Transient Lodging Tax
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