Transient
Occupancy Tax &
Utility Users Tax
Discussion
October 13, 2026
Transient Occupancy Tax Follow-Up
• RBMC Title 8, Section 2 Uniform Transient Occupancy Tax • Admin Report to Council February 3, 2026
• Council directed staff to:
• Proceed with a ballot measure proposing an increase
from up to 12% to up to 15% at the March 2027 election
• Prepare ballot measure language for review
1 Draft Ballot Measure Language
“To maintain critical City services, such as street and pothole repair, 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?”
2 User Utility Tax Follow-Up
3 • RBMC Title 8, Section 9 Telephone, Gas, Electricity, Water, and Video Users' Tax Law
• Council directed staff to:
• Provide an update on the Disney v City of Santa
Barbara case
• Review the City’s ordinance for potential
modifications to collect tax on video streaming
services
4 Targeted Updates for Video User Tax
• Additional defined terms
• Ancillary Video Services
• Video Programming
• Video Services
• Video Service Supplier
• Removal of language regarding internet streamlining in §8-9.04 to prevent conflict with the additional
application of video streaming
• Additional language in §8-9.09 (a) and (b)(5)
5 Comprehensive Updates to UUT
• Alternatively, the City may choose to make a broader
update to the ordinance language addressing:
• Combining video and telephone UT into a
Communication Users Tax given the overlap in
technologies
• Rate exemptions, the appeals process, and timeline
for notifications
Recommendations
1. Review and provide direction on proposed update to the City’s TOT ordinance language
2. Review and provide edits to the draft ballot TOT measure language
3. Review and provide direction on proposed update to the City’s UUT ordinance language
4. Provide direction to the City Attorney’s office for the completion of the ordinance updates
5. Provide direction to the City Clerk’s office to create ballot measures to be placed on the March 2, 2027 election
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