Transient
Occupancy Tax &
Utility Users Tax
Discussion
February 3, 2026
Overview
1. TOT follow up
2. Draft ballot measure language
3. Utility Users Tax information
4. Election timing
2 Transient Occupancy Tax Follow Up
• Additional Information Regarding Proposed TOT Increase • Election detail, hotel feedback, hotel worker wage
• TOT Measure recommended for March 2027 Election
• Draft Ballot Measure Language prepared using
examples provided by FM3 and other recent TOT
Measures with input from Legal Counsel
3 Draft Ballot Measure Language
• “To maintain critical City services, such as street and pothole repair, police and fire 911 emergency response
and preparedness, park and landscape maintenance,
senior and youth recreation programs; and for general
government use; shall the City of Redondo Beach
Ordinance raising the transient occupancy tax, paid only by hotel and lodging guests, from 12% to up to 15%,
providing an estimated $750,000 of revenue annually
per 1% increase, and all funds staying local, be
adopted?”
4 Utility Users Tax Update
• RBMC Title 8, Section 9 Telephone, Gas, Electricity, Water, and Video Users' Tax Law
• Potential utility users tax (video tax) application to streaming services
• City of Santa Barbara case – confirmed on appeal, pending deadline for California Supreme Court Appeal • RB ordinance update (video streaming tax collection)
could require voter approval
• Proposed action: review ordinance and propose changes (if needed) to tax to streaming services 5 Process
• March 2, 2027 Redondo Beach General Municipal
Election (recommended)
• Election formally called in November/December 2026
• Alternate Option – Unanimously declare a fiscal
emergency and present the TOT measure to voters on
an earlier election date (not recommended)
6 Recommendations
• Receive and file the report
• Direct staff to prepare the TOT Ballot Measure for the City’s March 2027 election
• Review and provide edits on the draft ballot measure
language
• Direct staff to
• Monitor the final outcome of Santa Barbara’s case
• Review the City’s UUT Ordinance for potential
modifications to collect tax on video streaming
services if Santa Barbara prevails
7