Transient
Occupancy Tax
Discussion
November 18, 2025
OUTLINE
1. TOT Rate Comparison
2. Adjustment Options
3. Hotel Impacts
4. Process
2 3
City TOT Rate Other Rate Type Other Rate
Inglewood 15.5%
Santa Monica 15.0% Tourism District
Short-term Rentals
+$2.20-$7/ night
+2%
Anaheim 15.0% Tourism District +2%
Malibu 15.0%
Beverly Hills 14.0% Development Agreement Varying
Culver City 14.0%
Manhattan Beach 14.0%
Hermosa Beach 14.0%
Los Angeles (City) 14.0% Tourism District (50+ rooms) +2% Hawthorne 12.0%
Redondo Beach 12.0% Tourism District +1%
Marina del Rey (LA County rate) 12.0% Tourism (self-assessment) +3% Palm Springs 11.5% Group Meeting Hotels +2%
Torrance 11.0%
TOT Rate Comparison
Adjusted Rate Options
• Set effective date
• Provide flexibility with an “up to” amount
• Exempt or carve out certain hotels
• Location
• # of Rooms/ ADR
4 Hotel Impacts
• Research mixed, most shows limited impact
• Depends on local market characteristics, demand,
and market conditions
• May more strongly impact group travel
• Weak demand could increase impact on visits and
revenue
• Mitigation
• Rate increase timing
• Some revenue supports tourism industry
5 Hotel Impacts
• Outreach:
• Redondo Beach Tourism Marketing
District (RBTMD)
• Does not oppose a TOT increase
• Proposes 1% TMD rate increase
• Some concern with demand
• Other Hotel Comments
• 14% TOT rate would not leave room
for TMD assessment increase
6 • Could consider polling to gauge resident response
• TOT measures pass at a fairly high rate
TOT Measures State of California
Year # of Measures # Passed Passage Rate
2024 28 23 82%
2022 22 16 73%
2020 22 18 82%
7 Process
Process
• June 2, 2026 statewide primary
• Discussion item with proposed ordinance changes
• January/ February 2026
• Call Election
• On or before March 3, 2026 meeting
• Supporting resolutions
• Arguments in favor, rebuttal of arguments against
(if necessary)
• Election results certified June 26, 2026
• Council sets effective date, tax rate
8 Council Actions • Receive and file report
information
• Direct staff regarding next
steps • Business outreach • Additional research • Prepare ordinance, resolutions, ballot measure
9