Voter approval of this measure would amend the Long Beach Municipal Code to increase the City's general purpose transient occupancy tax ("TOT" or "hotel bed tax") by 1%, from 6% to 7%. The TOT is a tax charged to guests of hotels, motels, and similar short-term lodgings who stay for a period of 30 days or less. Hotel operators or their agents collect the tax when guests pay for their rooms and then pay it monthly to the City. The City has collected a TOT since 1962.
The measure, which was placed on the ballot by the Long Beach City Council, would amend Section 3.64.035 of the Long Beach Municipal Code. This Section currently imposes a general purpose TOT at the rate of 6% upon guests of hotels and other transient accommodations within the City, the revenues from which are deposited in the City's General Purpose Fund and may be used for general City services. The general purpose TOT was separately adopted and is in addition to the City's special purpose TOT (LBMC section 3.64.030), which is also currently imposed at the rate of 6%, for the City's "Special Advertising and Promotion (SAP) Fund," which is dedicated to support the advertising and promotion of the City. The proposed Measure would not affect the special purpose TOT in any way.
If this Measure is adopted, the combined total TOT paid by a hotel guest would increase from 12% to 13% of the hotel's room rate. A 1% increase in the general purpose TOT is estimated to generate $2.8 million in additional annual revenue. This is a general tax which can be spent to fund general City services.
The TOT cannot be increased further without voter approval.
A "yes" vote favors increasing the general purpose TOT to 7%.
A "no" vote opposes the increase and maintains the TOT at 6%.
A majority of "yes" votes is required for the measure to pass.
