San Mateo Travel Tax Proposal Would Negatively Impact Demand

May 29th, 2012 |

A recent study conducted by Rockport Analytics found that two measures that San Mateo County voters will consider when they head to the polls on June 5: Measure T, a proposal to raise taxes on all SFO car rental receipts, and Measure U, a proposal to boost the hotel occupancy taxes on SFO-area hotels, would lead to significantly reduced demand for both rental cars and hotel rooms in the County.  The San Mateo’s Board of Supervisors estimates tax collections from the two measures would bring in $7.7 million; however, our study finds that these revenue collections are overstated by 31% because the plan fails to take into account the lower levels of demand that would stem from higher prices.  Learn more.