Council to Consider Hotel Tax Increase

The City Council tonight will consider placing a measure on the November ballot that would increase the city’s transient occupancy tax by 2 percent.

The council wants to raise the tax rate for hotel guests from 8 percent to 10 percent to help address a .

According to the staff report, Foster City has the lowest transient occupancy tax in San Mateo County. The city’s TOT hasn’t been increased since it was established in 1981, the report says, and even if voters pass the tax, the city’s rate would be among the lowest in the county.

The tax increase would generate an additional $325,000 a year for the city, or the equivalent of two police officers or three and half parks maintenance workers, the report says.

If a two-thirds majority of the council supports the ordinance that would change the tax rate, the measure would be submitted to the San Mateo Elections Official for inclusion on the Nov. 8 ballot.

The council will also discuss a ban on Styrofoam take-out containers.

The San Mateo County Board of Supervisors recently banned polystyrene containers in restaurants in unincorporated areas of the county. The ordinance, which requires all retail establishments to use compostable containers, took effect July 1.

Mayor Linda Koelling requested that the issue be brought to council after the supervisors encouraged all cities in the county to adopt a similar ordinance, according to the staff report.

Burlingame, San Bruno, Millbrae, Pacifica and South San Francisco have banned Styrofoam containers, the report says.

The council will be asked to give staff direction on whether to research the pros, cons and costs of a Styrofoam ban and bring back a draft ordinance for possible adoption.