L.A. voters turning down measure to raise hotel bed tax ahead of Olympics
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Los Angeles voters were giving thumbs down to a measure that would raise the city’s hotel bed tax ahead of the 2028 Olympics, while also extending the tax to short-term rentals booked through companies like Airbnb and Expedia.Votes were still being counted Wednesday, but preliminary results from Tuesday’s primary had Measure TT falling short of the majority needed for passage.If approved, Measure TT would raise the tax rate for hotel rooms from 14% to 16% until the end of 2028, staying at 15% thereafter.With a flood of visitors expected for the 2027 Super Bowl and 2028 Summer Olympics, city officials have projected that passage of TC would generate $44 million annually through 2028 and $22 million annually after that.“The Olympics are an opportunity to add some jet fuel to our visitor-serving community,” Councilmember Tim McOsker said earlier this year, when the council voted to place the measure on the ballot.Business groups said the tax increase would negatively impact the hotel industry, which is already reeling from a lack of demand and the threat of incoming increased minimum wages.Central City Assn.
president and chief executive Nella McOsker, the council member’s daughter, opposed the measure on behalf of the L.A.advocacy organization.“At a time when you’re seeing these declines in demand and losing on tax revenue year over year to the magnitude of $20 million, it just seems like a wrong time to impose more burdens on that shrinking base,” she told The Times in May.
On a related issue, voters appeared poised to approve a separate ballot measure that would require online travel companies and other intermediaries to pay the city’s hotel tax based on the markup price they charge to customers, and not the discount price they paid for the room.There were significantly more “yes” votes than “no” votes for Measure TC in preliminary returns.If approved, ...