Raising the Hermosa Beach hotel occupancy tax would could bring in an additional $400,000 for the city, staff estimated. The current rate has been in place since 1990 and is expected to generate approximately $2 million in revenue this year. It accounts for more than six percent of the budgeted income. The TOT tax is imposed on all people staying in a hotel in the city for 30 days or less.
According to the city staff report, the South Bay area average TOT is 11.6 percent. Redondo Beach is considering an increase from 12 percent to 14 percent. Manhattan Beach collects 10 percent, but has the authority to charge 12 percent. El Segundo charges the lowest hotel tax in the area at 8 percent.
Mayor Kit Bobko said that he did not feel that the government had a better idea on how to spend a consumer’s money than the consumer, particularly when it comes to tax increases, and made incendiary remarks comparing it to burning money in a furnace. He championed budget cuts over tax increases.
