I’m confused. If vintners and hotel operators and restaurants want to increase business through some sort of cooperative effort, then great. Why does the government need to be involved? This should be a private effort that can benefit its members via a directory and sponsored events, etc.
The wine market is heading downward, Sonoma will always be behind Napa in the public eye for the foreseeable future, costs to the consumer are already through the roof and we’re likely headed for stagflation or a recession. The last thing we need is another tax.
A little clarification - this is not a ‘tax’ in the sense that the govt is really not involved. A third party concollectanthe fees and it goes back to the association - the government really is not involved
Thanks Larry…appreciate the insight. I still can’t get by the word “Tax” which to me is government only. I think it would be insightful for knowledgeable people familiar with the situations in Sonoma County to do a “5 Why’s” analysis to get to some root cause that would better guide a solution. I saw the list of Sonoma County Tourism execs (5 people for over a million dollars annually) and is that just the tip of the iceberg (meaning is there a whole organization under them? Are they doing their job? Is enhancing that organization a solution?).
Personally, I think the challenges could be identified easily by anyone on this board…a wine berserkers focus group?
This information is not correct. A government governing body, either a city council or a county board of supervisors, forms the district by resolution. Then it either collects the assessments via its own tax collector, or it contracts with a third party collection agency. A nonprofit “owners’ association” is selected by the city or county, and by contract with the city or county, it provides services directly to the businesses in the district. If specific benefits are not provided directly to each paying business, then the assessment is really an unconstitutional tax needing voter approval. If the nonprofit is marketing a region in general, it’s a tax.
The assessment must be challenged in court within 30 days of the Resolution of Formation if the district is formed under SHC 36600-36671. A plaintiff has to have exhausted his administrative remedies and explained in detail in writing why he is protesting formation of the district. If the assessment isn’t paid, either the tax collector or the 3rd party contracted collection agency will pursue the debt with late fees and interest.
Two of these districts were just formed in my county. Unfortunately, I found the right lawyer a little too late. Recourse could be civil or criminal or by individuals or class action. The field is ripe.
This is an interesting question - and one that SBC may deal with in the near future should wineries choose not to pay in. Our first ‘installment’ was due by July 31st so we are just in the beginning stages. I’m not sure what mechanisms exist or what the ‘penalty’ is should wineries choose not to submit, but I’m sure there is something. I will see if I can find out . . .
The info provided with those 5 people is a bit misleading as they are not the employees of the Vintner’s Association or the Grape Assessment group - they are folks with the Sonoma Tourism group. That group is set up to market Sonoma County as a whole - not just the wine industry. My guess is that they are funded by hotels, restaurants, conventions, etc but I could be wrong.
The real issue here is that no plan was created before the attempt at putting together this BID was announced - just terribly done. If winemakers and growers can get together and be part of the plan, perhaps you’ll see a different outcome?
Help me understand this. There are plenty of taxes collected on both State and Federal levels that are not disbursed directly to each taxpayer. How is this different?
When you say “city or county,” aren’t these elected officials or administrators appointed by those elected officials? Do taxes in this jurisdiction require direct ballot approval by voters?
Let’s cut the BS here - the vintner’s association creates the BID; the board of supervisors needs to ‘approve’ the BID but this is a ‘formality’. each municipality within the jurisdiction (County in this case) needs to either vote themselves into the BID or remove themselves: the BID is voted on by the winery members and, if approved, a 3rd party company is chosen to ‘collect’ the fees and then these go back to the Vintner’s Association. The government is not involved in any major way in this - other than by ‘allowing it to occur’.
These funds are ‘insulated’ - they are spent by the Association in a manner determined by the Association and it’s members. Yes, there is some ‘leeway’ in how the money is spent, but this is all handled by the Vintner’s Association and it’s members.
You are mistaken. An association has no authority to levy assessments.
Please read how your district was formed. And please note that the county or city that formed the district can disestablish the district at any time where it finds malfeasance, misappropriation of funds, or illegal actions.
Jury instructions alone tell you a fraction of how a law actually works in practice. The statute tells you a little more, but so much is guided by the caselaw precedent.