Santa Monica : Hotel Tax Increase Studied

The City Council is considering raising its tax on hotel guests in Santa Monica from 10% to 12%, beginning in October.

The transient occupancy tax would bring in an additional $897,000--most of which has already been worked into this year’s budget.

“We’ll be generating revenue, which this city needs from sources that can afford it,” Councilman David Finkel said.

City Manager John Jalili said a hotel marketing consultant had calculated that the increase would not have an adverse impact on the industry.

Everyone except Councilwoman Christine Reed voted to instruct the staff to prepare an ordinance, which will be considered on June 27. Reed argued that those affected by the tax had not been given enough time to respond, but several other council members said there would be plenty of public discussion at the later meeting.