Yes No Measure N will increase the hotel bed tax, known as the transient occupancy tax, from 12 percent to 14 percent, generating roughly $3.5 million annually. We have reservations about the measure because it would make Santa Monica’s bed tax 1 percent higher than Marina del Rey’s hotel tax, potentially putting Santa Monica at a competitive disadvantage. Still, we support it — partly because the local tourism industry does, too.
City officials publicly have said the revenue generated by the tax increase will help them fulfill a promise to fund schools under a new agreement with the school district. City Hall will give a minimum of $6 million annually to local schools for at least the next five years, and Measure N will provide about half of that money.
We caution city officials, however, to be transparent about how extra money is spent. City Hall has conservative estimates about how much money the tax will raise, and the public should be part of deciding where the extra revenue would go, if there is a surplus. The hotel industry wants some of the money to go toward increasing public safety, and some of the revenue has been earmarked for the Convention and Visitors’ Bureau, to promote tourism. We expect the CVB to be transparent about how it spends the money as well.
Originally published in the Santa Monica Daily Press print edition on October 28, 2004. Read the original PDF.