Measure Seeks 30% Boost in Hotel Tax

In March, voters in Garden Grove will consider raising the city’s transient occupancy tax from 10% to 13%, a change that city officials hope will bring in several million dollars annually to the city’s general fund over the next 10 years.

And, as expected, it’s a change that former Councilman “Taxfighter” Bob Dinsen opposes.

The measure was placed on the ballot in December by the City Council, seeking to capitalize on the Disney expansion in Anaheim and the six new hotels in various stages of development at Harbor Boulevard and Chapman Avenue.

“It’s a politician’s dream come true,” Councilman Mark Leyes said. “It’s a tax on people who don’t live in your city.”

If voters approve the tax increase, it would make Garden Grove’s the second-highest rate in Orange County, behind Anaheim’s 15% bed tax.

Dinsen contends that raising the tax will hurt the city’s economy, sending tourists to hotels in cities with lower tax rates.

He wrote the argument against the measure that will appear in the March voters guide, but his argument will appear in a slightly altered version.

Superior Court Judge John C. Wooley reluctantly approved a number of changes to Dinsen’s argument at the request of city officials late last week.

City officials wanted struck from the argument a number of references to other fee increases approved or initiated by the City Council over recent years.

“I think they’re misrepresenting [the issue] saying that the 13% will be a good deal,” Dinsen said. “[City officials] don’t like that I’ve mentioned all the other fees that they’ve added over the years. I’m just trying to give the voters a perspective on the greed of city officials.”

Although Wooley did allow changes to inaccurate figures and amounts, he said he could not change the spirit of the argument.

“I don’t think you’re going to be able to sanitize this the way you want to,” Wooley said. “The people should have a dissenting opinion.”

City officials said they have no intention of silencing opposition.

Leyes said the measure has the support of the major hotel developers and a special provision to allow the council to make adjustments for smaller motel operators who will not benefit from the Disney expansion.

“I feel that any tax is taking money away from the economy,” said Dinsen, who served on the council 17 years. “The more money that’s spent on government . . . it’s just lost.”

Chris Ceballos can be reached at (714) 966-7440.