IMPARTIAL ANALYSIS BY THE CITY ATTORNEY OF PROPOSITION "N"

 
This measure would increase the City’s Transient Occupancy Tax from 12% to 14%.  The tax is paid by hotel guests and is computed by multiplying the tax rate times total charges for room rental.  

At present, two separate sections of the Municipal Code each impose a 6% Transient Occupancy Tax which, when added together, make for a 12% tax.  The proposed measure would delete one of these Code sections and increase the tax rate in the other to allow for a 14% tax.

It is estimated that the proposed tax increase would yield additional general fund revenues of approximately $3,500,000 annually that could be utilized for a wide variety of public purposes.  The proposed rate of 14% is the same as the current Transient Occupancy Tax rates in the cities of Los Angeles, West Hollywood and Beverly Hills. 

PREPARED BY:  Marsha Jones Moutrie

 WORD COUNT:  138
 

Text of Measure

Argument in Favor
 

This page was last modified on 01/23/2008