> ## Content Index
> Fetch the complete content index at: https://www.smdp.com/llms.txt
> Use this file to discover other available public pages before exploring further.

# City Council to make the bed for tax hike proposal
- URL: https://www.smdp.com/city-council-to-make-the-bed-for-tax-hike-proposal/
- Published: 2004-08-03T15:00:00.000Z
- Updated: 2026-10-23T04:47:18.000Z
- Author: Guest Author
- Tags: Government & Politics, Santa Monica, #archive-import

*Bed tax to be floated past voters*

*By Daily Press staff*

CITY HALL — Elected leaders tonight may officially attempt to get an additional $3.5 million a year from visitors who stay in Santa Monica hotels.

The City Council is expected tonight to approve placing an initiative on the November ballot that asks local voters to approve increasing the bed tax from 12 percent to 14 percent. Called the “Transient Occupancy Tax,” the tax is paid by hotel guests and the revenue goes straight into City Hall’s coffers.

The estimated $3.5 million is pivotal in balancing City Hall’s budget and will support many services, including police, fire, parks, libraries, parks and recreation, the environment and schools, officials said.

If the City Council doesn’t approve the ballot measure, the revenue projected for the last half of the fiscal year will have to be reduced about $1.6 million, which is what is estimated to be raised through the tax hike, officials said. The same amount in expenditures will have to be reduced as well.

It’s unclear what effect the hike would have on business. Some cities, like Los Angeles, West Hollywood and Beverly Hills already charge 14 percent while other nearby communities charge less than Santa Monica.

Hermosa Beach, Manhattan Beach and Redondo Beach have kept their bed tax at 10 percent, which is where Santa Monica’s was until it was upped to 12 percent in 1989\. But while the South Bay cities may not be direct competitors, some closer neighbors are. Marina Del Rey charges 13 percent and Malibu holds at 12 percent.

Some officials say raising the tax could turn away some potential business — especially travel agents, who buy package deals in bulk. Those agents often will choose Santa Monica because the bed tax is lower here than in surrounding areas, including Beverly Hills, Marina Del Rey and West Hollywood.

The bed tax was expected to generate $18,550,000 for City Hall this past fiscal year — the most since the 2000-2001 year, when $19,218,221 was raised, If approved, members of the City Council will be authorized to submit arguments and rebuttals on the measure. The City Attorney then will prepare an impartial analysis, showing the measure’s effect on the existing law, city staff said. The deadline for submitting arguments is Aug. 17 and rebuttals is Aug. 27.

*Originally published in the Santa Monica Daily Press print edition on August 3, 2004.* [Read the original PDF.](https://s3.us-east-1.amazonaws.com/smdp%5Fbackissues/080304.pdf?ref=smdp.com)