Latest news with #TransientOccupancyTax
Yahoo
30-04-2025
- Business
- Yahoo
San Diego's tax hike for hotels and short-term stays goes into effect soon
SAN DIEGO (FOX 5/KUSI) — Starting Thursday, people booking stays at hotels, motels and short-term rentals in San Diego will see higher costs due to a new tax increase that is set to take effect. The city's Transient Occupancy Tax (TOT), which was approved by voters as Measure C in 2020, will also be tacked on to stays at RV parks and campgrounds. After it takes effect May 1, the tax will apply to anywhere that is rented out to transients, defined by the city as people who stay in a property for less than a month. 4,200 tickets given out in San Diego in first two months of California's daylighting law Currently, the city's TOT is 10.5%. Starting Thursday, that tax will go up depending on a property's proximity to the San Diego Convention Center. It will be divided into three zones with properties closest to the Convention Center with the highest tax percentage at 13.75%. The two other zones will be taxed at 12.75% and 11.75%, according to the city. Before it passed, Measure C faced legal challenges that pushed back its enactment. For example, although it was approved by 65% of voters in 2020, it fell short of the two-thirds majority needed to pass. Following subsequent years of legal battles to decide whether it did pass and could be implemented, a San Diego Superior Court judge ruled last year that since Measure C was a citizens-led initiative, it only needed a simple majority or 50%. The increased tax is expected to generate approximately $82 million for the city in fiscal year 2026 and more than $1 million in additional revenue within the first ten years after it goes into effect. In its sixth through 10th year, 59% of revenue from the tax will go toward the Convention Center and related operations and 31% will be spent on addressing homelessness. The remaining 10% will be allocated for street repairs and infrastructure improvements throughout the city. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
21-03-2025
- Business
- Yahoo
San Diego's ‘hotel room tax' increases soon
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. Frustration grows over potholes along Miramar Road in San Diego 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. San Diego city leaders propose major parking management overhaul 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.
CBS News
27-02-2025
- Business
- CBS News
Lodi City Council reviews budget, may increase sales tax
LODI — The City of Lodi is looking at possible tax hikes to try to balance the books as a possible $1 million shortfall is forecasted each year for the next five years. One option being presented to the city council during Wednesday night's special meeting is increasing the city's current sales tax from 8.25% to potentially 8.75%. "Well, I'm concerned," Lodi resident Larry Estavan said. "You know, it's nice living here, and I wouldn't want to see it get any worse or more expensive." Estavan explained that he'll maybe "eat out less or be more frugal in my grocery shopping." This is a move that would bring in more than $8 million to the local economy. "I'm not too fond of that just because things are pretty expensive as it is," said local business owner Adrian Torrez, manager of The Hangout on North School Street in downtown Lodi. Torrez, along with some other business owners, is concerned this increase will cause bigger problems. "I'd hate to have to increase. My mom or my older brother, they own [The Hangout]. I'd hate for them to have to do that," he said. "I don't think they would, but it just makes it harder." Other business owners look at this increase in a positive light. "It's great," said Kay Claxton, owner and operator of French at Heart, also on North School Street. "If it's going to be used to help downtown, I think it's great. We haven't had a price increase in a long time." Where the money from this tax increase will go is unknown at this point, according to the city. For Torrez, he knows that regardless of what happens, his customers will help him through. "Our customers are pretty loyal," he said. "I think it would be the most part OK, but I think that the higher-ups, higher than me, the people that have control over that, I think they wouldn't want to do that." Besides the sales tax, another option being presented to the city council is to reimpose the Business License Tax. They could also decide to increase the city's Transient Occupancy Tax. The council did not vote on increasing the sales tax on Wednesday. It was just reviewing the budget.
