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San Diego's ‘hotel room tax' increases soon

San Diego's ‘hotel room tax' increases soon

Yahoo21-03-2025

SAN DIEGO (FOX 5/KUSI) — Staying at hotels and motels, short-term rentals, and RV parks and campgrounds in the city of San Diego is about to get more expensive.
The city's Transient Occupancy Tax (TOT) will increase starting May 1, following its approval as Measure C back in 2020.
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According to the city, the tax applies to all properties rented to transients. It defines a 'transient' as anyone who stays in a property for less than one month.
It took a considerable amount of time for the city to enact the tax increase due to legal challenges.
Although it was approved by 65% of San Diegans in 2020, the measure needed a two-thirds majority to pass. Years later, a San Diego Superior Court judge ruled Measure C only needed 50% of votes to be enacted.
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Starting in May, the tax increase will be divided into three zones with corresponding rates based on how close a lodging facility or campground is to the San Diego Convention Center.
The properties closest to the Convention Center will have the highest tax percentage at 13.75%. The other two zones will be taxed at 12.75% and 11.75%. The current TOT is 10.5%.
According to the city, the increased tax will lead to approximately $82 million in fiscal year 2026, with more than $1 million in additional revenue within the first ten years of its implementation.
Until 2030, 59% of the revenue generated will go toward financing the Convention Center and 41% to address homelessness, according to the city.
For the sixth through tenth year after the start of the tax, the allocations will change. The city still plans to spend 59% on the Convention Center and related operations, but 31% will be allocated to efforts to address homelessness and the remaining 10% will support street repairs and infrastructure improvements.
The Office of the City Treasurer says it plans to begin notifying lodging operators, property management companies and online hosting platforms about the tax rate increase next week.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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