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City of Hermosa Beach Hotel Tax Increase, Measure H (November 2015)
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| Measure info Amount: Increase to 12% |
A hotel tax increase question was on the ballot for Hermosa Beach voters in Los Angeles County, California, on November 3, 2015. It was approved.
Measure H authorized the city to increase its transient occupancy tax (hotel tax) from 10 percent to 12 percent. Moreover, Measure H prevented the increase, decrease or alteration of the city's hotel tax without approval from the city's voters.[1][2]
The city council first imposed a hotel tax in 1967. In 1991, the city set the hotel tax rate at 10 percent. In the 2014-2015 fiscal year, the city collected about $2.3 million—about 6.5 percent of the city's annual budget—from its 10 percent hotel tax.[2]
Unlike most tax questions, which are generally put before voters by the local governing body, Measure H was put before voters through a citizen initiative signature petition drive.
Election results
| Hermosa Beach, Measure H | ||||
|---|---|---|---|---|
| Result | Votes | Percentage | ||
 Yes | 3,027 | 84.93% | ||
| No | 537 | 15.07% | ||
- Election results from Office of the Los Angeles County Clerk
Text of measure
Ballot question
The following question appeared on the ballot:[1]
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Shall an ordinance be adopted that would increase the Hermosa Beach transient occupancy tax (hotel bed tax) from 10 percent to 12 percent of room revenue?[3] |
” |
Impartial analysis
The following impartial analysis of Measure H was prepared by the office of the city attorney:
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Ballot Measure H was placed on the ballot by initiative petition and proposes adoption of an ordinance that would increase the transient occupancy tax (hotel bed tax) from 10% of room rental charge to 12%. Currently, persons who occupy hotel, motel and other short-term rentals for thirty days or less pay a City tax of 10% of the daily room rate. The transient occupancy tax has been in place since 1967; the 10% rate has been in effect since 1991. The tax is collected from the room occupant by the hotel operator and paid to the City monthly. The revenue from the tax is used to fund general City services. The revenue from the transient occupancy tax in 2014-2015 was approximately $2.3 million and represents roughly 6.5% of general fund revenue. The proposed ordinance would increase the tax to 12%. It would also modify language in the existing ordinance to clarify that the tax applies to all short-term rentals of less than thirty days and that online reservation companies are obligated to collect the tax. If adopted, the ordinance would take effect on January 1, 2016. The tax cannot be increased in the future without voter approval. A “yes” vote is in favor of approving the increase in the transient occupancy tax rate. A “no” vote is against the increase. A majority of “yes” votes is required for the measure to pass.[3] |
” |
| —Hermosa Beach City Attorney Michael Jenkins[2] | ||
Full text
The full text of the Measure H is available here.
Support
Supporters
Members of Hermosans for Hotel Bed Tax worked to collect enough signatures to qualify Measure H for the ballot and formed the Committee for YES on Measure H to campaign in favor of the measure.[4]
The following individuals signed the official argument in favor of Measure H:[5]
- George J. Schmeltzer, former mayor of Hermosa Beach
- Hany S. Fangary, Hermosa Beach city council member
- J.R. Reviczky, former mayor of Hermosa Beach
- Janice R. Brittain, Hermosa Beach Public Works Commissioner
- Stacey Armato, former committee chairperson for Stop Hermosa Beach Oil
Arguments in favor
Supporters argued that Measure H would not discourage tourists because 12 percent was about the average hotel tax rate for the surrounding cities. Proponents also claimed that it was a good way to increase city revenue without increasing taxes for residents.[4]
The YES on Measure H website posted the following endorsement of Measure H made by long-time Hermosa Beach residents Dency and Moira Nelson:
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Measure H brings Hermosa's Bed Tax up to the average charged locally and across the state. It's a way to bring revenue to our city from the welcomed visitors who stay in our hotels and enjoy our city, benefitting from our services, but compensating us for them. It's a no Brainer![3] |
” |
| —Dency and Moira Nelson[6] | ||
Official argument
The following official argument was submitted in favor of Measure H:
| “ |
VOTE YES on Measure H! "Hermosa’s Transient Occupancy Tax (aka "TOT" or "Hotel Bed Tax") on guests who stay overnight in our hotels, motels, and hostels has been 10% for twenty five years. This fee is one of the most direct ways for our City to collect revenues from visitors, which helps pay their fair share for City services." Since 1990, the average rate of Hotel Bed Tax in our nearby cities and the county has increased to 12%:
Supporting this measure would generate an estimated additional $440,000 in annual revenue from existing hotel rooms for our General Fund. City Council can use this revenue to fund capital improvements, infrastructure maintenance and upgrades, fire, police, civil services, and beautification projects. According to Dean Runyan Associates, tourism consultants to the State of California: “Most leisure travelers do not choose their destination based on the Hotel Bed Tax. This small increase to 12% would have no measurable impact on occupancy rates since Hermosa Beach is not a convention/corporate destination, and this rate is in line with neighboring cities and the rest of Southern California.” This small increase would mean an additional $2 per $100 of nightly room rate, or an additional $5 on a $250 per night room. Since nearly all of those staying overnight in Hermosa’s hotels are tourists, the fee will be paid mostly by non-residents. Hotel Bed Tax is not paid by hotel owners – they collect it from their overnight guests. VOTE YES on Measure H and help keep Hermosa the "Best Little Beach City"![3] |
” |
| —George J. Schmeltzer, Hany S. Fangary, J.R. Reviczky, Janice R. Brittain and Stacey Armato[5] | ||
Opposition
If you know of endorsements or arguments that should be posted here, please email the the Local Ballot Measures Project staff writer.
Path to the ballot
Measure H was put on the ballot through a successful initiative signature petition.[2]
Recent news
The link below is to the most recent stories in a Google news search for the terms Hermosa Beach hotel tax Measure H. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.
See also
- Local hotel tax on the ballot
- Hotel taxes in California
- Los Angeles County, California ballot measures
- November 3, 2015 ballot measures in California
External links
Footnotes
- ↑ 1.0 1.1 Los Angeles County Elections Office, “Measures appearing on the ballot on November 3, 2015,” accessed September 8, 2015
- ↑ 2.0 2.1 2.2 2.3 Hermosa Beach City Government, "Impartial Analysis of Measure H," accessed September 22, 2015
- ↑ 3.0 3.1 3.2 3.3 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
- ↑ 4.0 4.1 Committee for YES on Measure H, "Home," accessed September 22, 2015
- ↑ 5.0 5.1 Hermosa Beach City Government, "Argument in favor of Measure H," accessed September 22, 2015
- ↑ Committee for YES on Measure H, "Endorsements," accessed September 22, 2015
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