Hotel Tax Proposed to help finance a new San Francisco 49ers stadium

Section 7.5 of the (non-binding) 49ers term sheet discusses a proposed extra tax on hotel room rates in addition to the current 9.5% Transient Occupancy Tax the city currently levies on hotel room charges (military personnel and government employees on business trips can get reimbursed). The term sheet mentions eight hotels and newspaper articles have mentioned they are within 2 miles (apparently as the crow flies) of the proposed stadium. These eight hotels are have voted and will tax their guests an extra amount to pay money toward the stadium. The extra tax will be 2%, bringing the total tax for guests in these 8 hotels to 11.5%.

Ironically, while the hotels were always going to face competition from hotels in other cities, particularly San Jose hotels along the light rail route, the city of Santa Clara has allowed additional competition to come from inside the city. ex-49er Joe Montana has teamed with two individuals (one the former owner of the 49ers who had to give up the team when he was convicted of a crime) and the city is going to allow them to build a hotel on 7 acres of city land across the street from the stadium. In addition to the additional competition, these 8 "stadium hotels" are also facing something else they probably hadn't planned on - Great America has agreed to close on days when there is a stadium event, including 49ers games. So the hotels will gain from a stadium event, but could lose Great America related business on weekends when Great America will only be open one day.

Santa Clara San Francisco 49ers Stadium Mello-Roos Hotels

The 8 Hotels within 2 miles of the stadium that will be made a part of a Mello-Roos Communities Facilities District and asked to levy an extra guest tax to pay for the 49ers stadium are presumed to be:

Other Santa Clara Hotels (not being taxed for San Francisco 49ers Stadium)

Silicon Valley Hotel Room Rate Taxes (Transient Occupancy Tax)