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Assn6 - ESM 204 Bed Tax Incidence Refer to the reading by...

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ESM 204 Bed Tax Incidence Refer to the reading by Melinda Burns of the Santa Barbara News-Press on Measure B, the proposed increase in the bed-tax in the City of Santa Barbara to pay for creek and beach clean-up. You work for the Mayor's office who has asked you to prepare a one- page memo (with supporting appendices if necessary) outlining to her who in fact will end up paying for this clean-up and who will benefit. As usual, she would like the memo backed up by analysis in an appendix. Admittedly, the data available to you is quite sparse. But that is often the case. Use what information you have or can find and make assumptions in other cases. Some “facts/oversimplifications” you may assume: 1. There are 3,500 hotel rooms in the City of Santa Barbara and 1,500 hotel rooms to the west on the Southcoast, including in Goleta. Assume all these rooms are identical and people don’t really care if they stay in Goleta or the City of Santa Barbara. But that’s it – forget about rooms in Montecito, etc.
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