29,206 / 74.69% Yes votes ...... 9,897 / 25.31% No votes

See Also: Index of all Measures

At present, two separate sections of the Municipal Code each impose a 6% Transient Occupancy Tax which, when added together, make for a 12% tax. The proposed measure would delete one of these Code sections and increase the tax rate in the other to allow for a 14% tax.

It is estimated that the proposed tax increase would yield additional general fund revenues of approximately $3,500,000 annually that could be utilized for a wide variety of public purposes. The proposed rate of 14% is the same as the current Transient Occupancy Tax rates in the cities of Los Angeles, West Hollywood and Beverly Hills.

PREPARED BY: Marsha Jones Moutrie

City of Santa Monica

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Tourists who stay in Santa Monica hotels enjoy the benefit of many City services. They pay a tax on their hotel rooms, known as the Transient Occupancy Tax, or TOT, to help fund those services.

Unlike property tax and sales tax, which are collected by the State of California, this local tax can't be taken away by the State to solve its own budget problems. The proceeds of the TOT stay right here in our community!

The hotel room tax supports City services including police, fire, paramedics, parks and recreation, environmental protection and after-school programs. It helps the City make community-use payments to the Santa Monica-Malibu Unified School District.

This tax is paid entirely by visitors. It doesn't cost residents one dime.

Santa Monica has not raised the TOT since 1989. The City kept its hotel room tax lower than that of neighboring communities to give our hotels a competitive edge during the past few difficult years. The proposed increase of 2% - just a few dollars on the average hotel bill - brings the Santa Monica tax in line with Los Angeles and other Southern California communities. Now is the time, with occupancy and room rates on the upswing, to make sure that visitor-generated dollars help fund City services.

We need to maintain and improve our City services, and this hotel room tax comes at no cost to residents. Vote YES on Proposition N.

Robert T. Holbrook, Santa Monica City Councilmember
Nathaniel Trives, Former Mayor
Kevin McKeown, Mayor Pro Tem
José J. Escarce, President, SMMUSD Board of Education
Pam O'Connor, Santa Monica City Councilmember

(No arguments against Measure N were submitted)

6.68.020 Tax.

On and after the effective date of this ordinance, there is hereby imposed and levied on each and every transient a tax equivalent to fourteen percent (14%) of the total amount paid for room rental by or for any such transient to any hotel; which said tax shall be collected from such transient at the time and in the manner hereinafter provided. Said tax is levied for revenue purposes and is necessary for the usual financial operation of the City of Santa Monica.