Tax Hike Gets Warm Reception in Santa Clara

Hotel tax hike would raise $5M for 49er stadium in Santa Clara

By Kris Sanchez
|  Tuesday, May 11, 2010  |  Updated 11:00 AM PDT
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Tax Hike Gets Warm Reception in Santa Clara

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SAN FRANCISCO - DECEMBER 27: Dashon Goldson #38 and Brandon Jones #81 of the San Francisco 49ers are introduced against the Detroit Lions during an NFL game at Candlestick Park on December 27, 2009 in San Francisco, California. (Photo by Jed Jacobsohn/Getty Images)

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The words "tax hike" are usually fighting words, but not so in Santa Clara where the city's biggest hotels and the proposed 49ers stadium is concerned. Tonight, the city council will vote to tack on an extra 2% hotel tax on the eight hotels near the parking lot the Niners want to be their new home. The hotels in question are on board.

If the council votes in favor of the 2% hike at their 7 p.m. council meeting, hotel patrons would pay that on on top of the city's existing 9.5% hotel tax already in effect. The deal would raise about $35M toward the $937M cost of the proposed stadium. The eight hotels in question -- the Hyatt Regency, Santa Clara Hilton, Santa Clara Marriott, Avatar Hotel, The Plaza Suites, Embassy Suites, Biltmore Hotel and Hotel Sierra -- will not fight the tax hike because they have much to gain financially from the increased tourism an NFL stadium would bring in their community.

The tax increase only goes into effect if voters approve the stadium when they vote on June 8.

Just over half of voters polled in the latest stadium survey said they would approve the stadium. Thirty-six percent of votes said they would vote no on Measure J, according to the poll which was commissioned by the San Jose Mercury News and KGO-TV.

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