LOS ANGELES – A motion seeking a report from the city’s Office of Finance on a potential ballot measure to change the way the tax on hotel rooms is calculated was introduced Friday by Councilmembers Tim McOsker and Bob Blumenfield.
Under what is officially known as the transient occupancy tax, online travel companies collect and remit the tax on the discounted and/or wholesale room rate agreed upon with the hotel, rather than on the actual amount the guest pays for the room.
McOsker and Blumenfield are seeking to learn the amount of increased tax revenue the city would receive if the tax were based on the amount paid for lodging rather than the wholesale or discounted rates.
Inglewood voters increased their Transient Occupancy Tax (TOT) under Measure H in a special election held in November 2021. Voters overwhelmingly supported the tax increase from 14% to 15.5% which is expected to bring in an additional $730,000 annually.
Measure J approved by Anaheim voters in November basing the tax on the full retail amount could guarantee up to $3 million in additional hotel tax revenue annually, according to the motion. Anaheim collected $267 million from the hotel tax in the 2021-22 fiscal year, the motion said.
Staff contributed to this report.
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