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Encinitas Sand Tax Part Two

Voters in Encinitas decide next month whether to approve a tax on short-term vacation rentals. The money would pay for projects to put sand back on the city's beaches. KPBS Environmental Reporter Ed J

Encinitas Sand Tax Part Two

Voters in Encinitas decide next month whether to approve a tax on short-term vacation rentals. The money would pay for projects to put sand back on the city's beaches.  KPBS Environmental Reporter Ed Joyce has more on Proposition K.

Hotels and motels in Encinitas now pay a 10 percent tax, with 2 percent going to sand replenishment.

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But Proposition K would extend that two-percent to vacation home rentals of 30 days or less.

Realtor Chris Carrico specializes in vacation rental properties around Encinitas. 

She says the tax is unfair to property owners and vacation renters.

Carrico: You know they've done the replenishment without this. It's not going to bring them that much more income because in the wintertime the people are renting by the month versus the weekly. So they don't pay the tax anyway, once you do 31 days.

She says raising taxes during a down economy discourages tourism.

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Steve Aceti is with the California Coastal Coalition.

He says adding sand to the beaches is critical for the city's tourist economy.

Aceti: If I was the landlord of a short-term rental I would be supporting this because I know that that's why people are coming to Encinitas and renting my house. If we don't have beaches that are in good condition, then those renters are going to go elsewhere.

A similar measure was narrowly defeated by Encinitas voters last June.

The proposition requires a two-thirds majority to pass because the tax dollars would be dedicated to a special fund for sand replenishment.
 
Ed Joyce, KPBS News.