Rising inflation continues to squeeze city budgets across Southern California.
In response, seven L.A. County municipalities are turning to visitors to help fund essential public services, according to NBC Los Angeles.
Rather than raising general sales taxes on local residents—like Los Angeles’ proposed Measure FD—these seven cities are asking voters to approve higher transient occupancy taxes (TOT).
The proposed measures target short-term lodging, placing the cost on hotel guests and vacation rentals.
Why cities are targeting travelers
Municipal leaders argue that additional revenue is crucial to maintain 911 emergency response, firefighter staffing, and infrastructure repair.
Shifting these costs to out-of-town visitors allows cities to protect their General Funds without increasing local resident taxes.
Critics, however, warn that higher lodging costs could make local accommodations less competitive and discourage tourists from staying in these communities.
Breakdown of the 7 proposed hotel tax measures
Here is how each city proposes to update its hotel and short-term rental tax rates:
- Alhambra (Measure HT): Expands the existing 12% hotel tax to short-term rentals like Airbnb and Vrbo. The change expects to generate $134,000 annually for 911 response, fire protection, and parks.
- Burbank (Measure C): Increases the transient occupancy tax from 10% to 12%. It expects to raise $3 million annually for public safety, wildfire prevention, streets, and libraries.
- Culver City (Measure T): Raises the tax rate from 14% to 16% in two steps (15% in March 2027 and 16% in March 2028). The measure projects up to $2 million annually for emergency services, mental health, and affordable housing.
- Hawthorne (Measure O): Bumps the city hotel tax from 12% to 17%. It aims to deliver $3.1 million annually to fund police, fire, and street maintenance.
- Lynwood (Measure L): Creates a brand-new 12% hotel tax on hotel and motel stays. It projects $751,000 annually for crime prevention, anti-human-trafficking programs, and street repairs.
- Monterey Park (Measure AAA): Increases hotel taxes from 13% to 14% and sets a 16% rate for short-term rentals. It projects $600,000 annually for police, fire, and road work.
- Rancho Palos Verdes (Measure RS): Raises lodging taxes from 10% to 13%. It expects $2.2 million annually to tackle landslide repairs, sinkhole prevention, and wildfire preparedness.
Voters in each respective city will decide on these measures during upcoming local elections.
