RES 97030 - Laserfiche WebLink

Horse Racing Tax State Assembly bill AB304 became effective 1/1/96. AB304 allows the County to assess a possessory interest tax on the wagering facility located at the fairgrounds, and deduct this tax from the horse racing tax revenues that the City receives. While the City has not been informed officially by the County of the amount, it has been estimated at $60,000. The horse racing tax projections were already reduced by this amount during the Midterm review last spring. At this time staff is making no adjustments to the projected revenue of $120,000. The only other revenue received by the City directly related to fairgrounds activities is approximately $10,000 to $20,000 per year in sales taxes and business license taxes generated by ongoing operators on the grounds. The City seldom receives much sales tax from weekend shows, since the State does not care if sales tax is attributed specifically to temporary sites, so long as it is reported. Staff and our sales tax consultant have spent countless hours in trying to gain sales tax credit for the temporary locations, to no avail. SUMMARY OF GENERAL FUND REVENUE PROJECTION ADJUSTMENTS In total, net recommended adjustments to General Fund revenue projections reflect a $2.76 million increase, from $39.12 million to $41.88 million, or about 7%. Major adjustments are summarized as follows: Property taxes $ 359,000 Sales tax 200,000 Building & Public Works fees 565,000 Interest Income 250,000 PERS one-time adjustment 549,000 Hotel Taxes 420,000 Auto In Lieu fees 100,000 Business License Taxes 100,000 Planning fees 58,000 Transfer Tax 50,000 COPS grant (correction) 55,000 Sale of equipment 42,000 Franchise fees 29,000 Mandated cost reimbursement 26,000 Misc reimbursements 26,000 Recreation Fees (119,000) All Other (net) 49,000 Total Net Adjustment $ 2.76 million SR97:110 5