Transient Occupancy
Tax Revenue Measure Proposal
June 28, 2022
• Recovery from the pandemic continues at a slow pace
• City services, capital and maintenance below pre-pandemic levels • New revenue streams required for new or expanded programs • Proposed Transient Occupancy Tax measure would bring an estimated $4.1 million annually
Additional resources required to support community priorities City TOT
Rate Additional Assessment Total Equivalent
Inglewood 15.5% 15.5%
Palo Alto 15.5% 15.5%
Malibu 15% 15%
Anaheim 15% TMD 2% 17%
Ojai 15% 15%
Garden Grove 14.5% TMD 2.5% 17%
Los Angeles 14% TMD 1.5% 16.5%
Santa Monica 14% TMD $1.90-$6.25/ room night (approx. 1-2%) 15-16% San Francisco 14% TMD 2.75% (highest tier) 16.75%
Oakland 14% TBID $1.50/ room (>50 rooms) Over 14%
Long Beach 12% TMD 3% 15%
Current Transient Occupancy Taxes in Context
Increase existing TOT rates:
• By 1% for hotels
• By 3% for vacation rentals (homeshares through Airbnb, Vrbo, and other platforms)
Proposed Transient Occupancy Tax Measure
Addressing homelessness and public safety are key community needs • Homeless Liaison Program (HLP) services seven days a week • Downtown Services Unit (DSU) and the Public Services Officer (PSO) program expansion
• Homeless multidisciplinary outreach team beyond the
Downtown area
• SAMOSHEL program redesign to accommodate 24/7 intakes Revenue Can Address Key Needs
• 5-person committee, Council appointed, 2-year terms
• Hospitality industry (1), homeless service provider (1), business community (1), residents (2)
• Additional detail to be included in a resolution to be adopted by 2/28/23
Advisory Committee
Description Year % Yes Poll % Yes
Election
Measure ES SMMUSD bond 2012 62% 68%
Measure GSH City sales tax 2016 55% 62%
Measure V SMC bond 2016 65% 66%
Measure SM property transfer tax 2020 62% 72%
Proposed transient occupancy tax 2022 70%
7 Support for Transient Occupancy Tax Greater than Levels of Support for Previous Voter Approved Measures
To address homelessness, improve 911 emergency response times and neighborhood police protection, make public areas safer and cleaner, including streets, sidewalks, parks, and the beach, and provide other vital City services, shall the City of Santa Monica increase the transient occupancy tax – which is paid entirely by overnight visitors – by 1% for hotels and motels, and by 3% for vacation rental properties, providing approximately $4.1 million annually, until ended by voters, with all funds benefiting Santa Monica.
Proposed Ballot Language
• Approve the resolution
• Designate one or more Councilmembers to write the
argument in favor of the measure
Recommended Action