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Opponents say the proposal amounts to an unfair tax burden on one segment of the business community. It will hurt not only the hotels but also bars and restaurants that cater to hotel guests, they say.

The proposal, No. 2A on Glendale's Nov. 2 ballot, would require the city's five hotels to collect a 3 percent lodger's tax on room rentals, in addition to a 7.3 percent sales tax. The 3 percent tax would go away at the end of 2002.

A second proposal, No. 2B on the ballot, would close a loophole that allows guests who stay at least 30 days to avoid paying taxes. The tax exclusion was intended to protect the tenants of Glendale's numerous apartment buildings, City Manager Veggo Larsen said. But it now is providing a no-tax benefit to long-term guests at two extended-stay hotels, he said.

Opponents of the lodger's tax, led by hotel officials and key figures in the pro-business Glendale Tea Party, have formed a political action committee, Save Our Jobs. They hope to raise several thousand dollars to pay for mailings and signs, said Chuck Bonniwell, a Tea Party leader.

Opponents also are registering voters and plan a door-to-door campaign to defeat the proposal, Bonniwell said. Hotel workers will telephone residents to urge them to vote against the tax, he said.

A group of residents supporting the ballot issue plans to distribute fliers and is registering voters, said Anita Kreutzer, a former councilwoman. ''The lodging tax is for people who are visiting our city. It's not going to harm any of our citizens,'' she said.

The 3 percent tax proposal came from Larsen, who said the city's 2000 budget will need a $400,000 infusion to cover loss of sales taxes from the recent closing of the Builder's Square store on South Colorado Boulevard. The added tax would bring in about $377,000, he said. Removing the exclusion for extended stays would generate an additional $20,000, he said.

A new tenant, likely a national home-improvement chain, is expected to take over the empty store, but it could be well into 2000 before sales taxes are flowing again, Larsen said. Without replacement income, the city would have to cut spending, he said.

The tax proposal is a knee-jerk reaction to what probably will be a temporary downturn in city finances, Bonniwell said. ''The city could easily say, 'Let's just cut back on a few nonessentials.' ''

Matthew Kryjak, general manager of Loew's Hotel Giorgio, said the lodger's tax would make it more difficult for Glendale hotels to compete with nearby Denver lodgers. Some hotel workers could lose their jobs, he said.

''This is certainly going to impact our business. I'm dealing with groups that can make other decisions on where they stay,'' Kryjak said.

But supporters of the lodger's tax argue that Glendale hotels still would have a competitive edge over Denver. Room taxes there now total 11.8 percent and will rise to 13.55 percent if Denver voters approve a $261 million expansion of the Colorado Convention Center.

''I don't think 3 percent is onerous in any way,'' said Glendale Councilman Jay Balano, who voted with four other council members to put the measure on the ballot. He said he views the lodger's tax as a first step toward restructuring the city's revenue base to ease reliance on sales taxes.