Self-assessment, as detailed within the California Tourism Marketing Act is the only funding methodology that has been supported by the state's travel industry, the legislature and the Governor. This is a new way of funding tourism promotion, but self-assessment has been used by California's agriculture industry to promote increased consumption of various agricultural products including California eggs, strawberries, almonds, cheese, milk, beef and other goods. They may pass on some or all of the assessment to customers. They are not part of gross receipts or gross revenue for any purpose, including the calculation of sales or use tax and income pursuant to any lease. However, assessments that are passed on to customers shall be included in gross receipts for purposes of income and franchise taxes.
Businesses pay the same assessment per million dollars in revenue.
All regions of the state and all business categories are represented on the Commission. Industry categories, such as accommodations, elect their own commissioners relative to the financial contribution that they make toward the marketing program. Their vote is equal to their contribution. And, development of the marketing plan requires public input and review. So, each business has the opportunity to directly influence how it feels the statewide marketing plan should be structured.