San Diego Voters Nix Football Stadium Tax Hike, OK Pot Tax

For over 50 years, Bloomberg BNA’s renowned flagship daily news service, Daily Tax Report® has helped leading practitioners and policymakers stay on the cutting edge of taxation and...

By Stephen Siciliano

Nov. 9 — A proposal by the San Diego Chargers to raise the city's transient occupancy tax for the purpose of financing a new NFL stadium and convention center complex has been voted down.

Measure C, which would have increased the city’s hotel occupancy tax by an additional 6 percent to fund the stadium, was defeated by a vote of 57 percent to 43 percent.

Measure D, a citizens initiative that sought to raise the TOT by up to an additional 5 percent for a stadium, convention center, tourism promotion and other development issues was rejected by voters, 60 percent to 40 percent.

The Chargers were seeking a new stadium as they also mull a move to Los Angeles.

The defeat of both measures removes the potential conflict of deciding whether they needed a simple majority or a two-thirds vote to become law. That issue surfaced in March when a California appeals court ruled that taxes raised by citizen-proposed ballot initiatives aren't subject to that particular constitutional requirement.

Recreational Marijuana

Measure N, a ballot measure establishing an initial 5 percent tax on sales from recreational marijuana outlets, was passed by San Diego voters, 68 percent to 32 percent. The measure increases the tax to 8 percent starting in July 2019.

The measure puts a 15 percent ceiling on the tax. Its application was dependent on the passage of Proposition 64, a statewide measure to legalize recreational marijuana, that ultimately prevailed, 56 percent to 44 percent.

To contact the reporter on this story: Stephen Siciliano in Los Angeles at correspondents@bna.com

To contact the editor responsible for this story: Ryan C. Tuck at rtuck@bna.com

Copyright © 2016 The Bureau of National Affairs, Inc. All Rights Reserved.