Allen Thompson fought the city over a tax bill. The bill won.

Satire: AI-altered image of Allen Thompson wearing gold rings behind a podium

He refused to pay. He refused an audit. He ended up writing a check for more than double the city's first estimate.
And now he wants your vote in District 2?

The Bill He Wouldn't Pay

Grover Beach requires short-term rental operators to send the city 12% of rental income as Transient Occupancy Tax. Thompson ran a rental. The city says he didn't send it from 2019 through 2022.

  1. August 22, 2022
    $16,000

    After a heated debate, the City Council revoked his short-term rental license. Thompson argued he didn't owe the tax, citing his own reading of the city's "hotel" definition and a private conversation with then-Mayor Jeff Lee.

    New Times San Luis Obispo

  2. January 20, 2023
    $30,000

    The city sued him, claiming nearly $30,000 plus 1.5% monthly interest. The complaint listed nine causes of action. The city alleged unremitted taxes, fraud and negligent misrepresentation.

    New Times San Luis Obispo

  3. The audit
    Refused

    Thompson wouldn't open his books. So the city hired a consultant who rebuilt the bill from booking data.

    New Times San Luis Obispo

  4. February 14, 2023
    $39,043.75

    He settled. The total covered back taxes, interest and penalties. City Attorney David Hale told the council: "He has seven days to send a check to the city."

    New Times San Luis Obispo

Where That Money Goes

Transient Occupancy Tax is a tax on visitors' stays. Every operator in town collects it and sends it to City Hall. Hotels do it. Hundreds of rental hosts do it.

That money funds the city that residents live in. Thompson decided the rule didn't apply to him until a lawsuit said otherwise.

The Question for District 2

He wants a vote on the city budget.

The last time Thompson dealt with that budget, he held back the city's share, fought the bill at a public hearing, refused the audit and settled once the city took him to court.

Taxes are a fair thing to argue about. Keeping money that belongs to the city is a different thing. District 2 deserves a council member who pays what everyone else pays.

Pass It On

Most District 2 voters have never heard this story. Send it to a neighbor.

Your messageAllen Thompson fought Grover Beach over unpaid rental taxes. It cost him $39,043.75. And now he wants your vote in District 2?
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Sources

  1. New Times San Luis Obispo, "Grover Beach sues former short-term rental owner for tax evasion," January 2023
  2. New Times San Luis Obispo, "Grover Beach reaches tax evasion settlement with former short-term rental owner," February 2023

The case was a civil lawsuit. It was to be dismissed with prejudice once he paid. No admission of wrongdoing was reported.