Jul 22, 2008

Supes to vote on tax initiatives

Mark Abramson / Daily News Staff Writer

Two San Mateo County supervisors today intend to press their colleagues to place at least one tax measure on the November ballot to generate millions in needed revenue.

Board Vice President Mark Church and Supervisor Rich Gordon, who sit on the board's finance and operations subcommittee, would like to see a 5 percent tax levied on the gross receipts of car rental businesses and possibly an 8 percent tax on commercial parking facilities. The biggest source of those taxes would be the garages and car rental facility at San Francisco International Airport.

County officials estimate a car rental business tax would produce $15 million and a commercial parking tax $4 million. The vehicle rental businesses at SFO already pay an 8.25 percent tax, which produces about $3 million for the county.

To qualify for the November ballot, each proposed tax must be approved by at least a 4-1 vote. A majority of voters then would have to approve the taxes.

Church said he and Gordon will push for the vehicle rental business tax and ask fellow supervisors to consider the commercial parking tax because the county faces a $25 million deficit this fiscal year and a projected $90 million deficit next fiscal year.

"It has a much lower percentage figure and it generates more income," Gordon said about the car rental business tax. "It also has less of an impact on our local residents. "I think you could link it to reducing the carbon footprint."

He said the car rental business tax was suggested by one of his staff employees, who had previously worked for a legislator in Atlanta during discussion of a similar measure there.

"I don't think it will have much of an impact at all (on car rentals). If you need and want the convenience of a rental car you will come and get a rental car," Gordon said.

He and Church said they favor that tax over the commercial parking tax if forced to choose.

"You want to do the right thing and not overwhelm everyone with too many tax measures," Church said. "If we don't do anything we are going to have this huge deficit in five years."

Representatives of car rental companies at SFO could not be reached for comment.

Gordon said he has discussed the parking tax with SFO's airport director, John Martin, who has indicated the tax could work. Martin was unavailable for comment.

Church called the commercial parking tax a strategic decision that would have to be made by the supervisors.

"The parking tax issue is one that we have kicked around for a few years now, and it is one that is used by other jurisdictions," Church said.

According to a county memo, the cities of South San Francisco and San Bruno have 8 percent parking taxes, and Millbrae has a 10 percent tax on commercial parking operators.

Officials with New South Parking, which runs the parking facilities at SFO, declined to comment for this report.



E-mail Mark Abramson at mabramson@dailynewsgroup.com.



AT A GLANCE

WHAT: San Mateo County Board of Supervisors meeting

WHEN: 9 a.m. today

WHERE: San Mateo County Hall of Justice, 400 County Center, Redwood City

WHY: The board will decide whether to place tax measures on the November ballot