LA Hotels City Council Consider Room Tax Hike to Promote Los Angeles Tourism

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A 1.5% tax could be added to rooms this fall with the money used to promote tourism.

 

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LA Hotels Seek New Tax
1.5% Fee Would Be In Place By Fall


The new fee affects 192 hotesl in LA's city limits.

The Los Angeles City Council, backed by hotel owners, are considering adding a 1.5% tax on hotel rooms, with the money to be spent to promote LA as a tourism destination.

It would affect the 192 hotels in Los Angeles (including Hollywood) with 50 rooms or more. The City Council is expected to vote on the measure by the end of August, with the hotels following in early September. The tax is expected to be added this fall.

The hotel tax in the city currently stands at 14% as a transient occupancy tax (or bed tax) and the new fee would add an extra 1.5% to the cost of a room.

The money would go to the Los Angeles Tourism Marketing District Management Corp., which would manage the funds. According to the hotels and the City Council, all the money would be spent directly on promoting tourism in Los Angeles.

Currently, the city spends $11.4 million on tourism, compared to $24 million by San Diego and $71 million by Las Vegas.

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