LA Calls for Authors to Write Arguments for Tax Measures on June Ballot

The city of Los Angeles is seeking individuals and organizations to write arguments for three tax-related measures set to appear on the ballot for the June 2 primary election, it was announced Friday.

Interested parties must submit requests to the office of Council President Marqueece Harris-Dawson no later than 5 p.m. next Friday. Ballot arguments in favor and against these three measures will be published in the voter information pamphlet, which will be provided to all registered L.A. voters.

Harris-Dawson will designate applicants from the request pool to be considered by the City Council’s Rules and Elections Committee at its special meeting on March 4 at 9 a.m. Designated authors will be notified by the City Clerk and will be provided with the necessary forms and detailed instructions.

For further information or assistance, contact Christopher Garcia with the City Clerk’s Election Division at 213-978-0444 or christopher.garcia@lacity.org, between 8 a.m. and 5 p.m., Monday through Friday, according to the City Clerk’s Office.

The City Council approved a proposed measure to increase the transient occupancy tax, or the “hotel tax,” which covers hotel and motel rooms, short-term rentals and hostels.

If approved by voters, the measure would increase the tax by 2% through 2028, then decrease it by 1% in the following years.

The TOT stands at 14% of the paid total, including all fees and charges that are associated with occupancy of the space. Malibu, Santa Monica and Beverly Hills have a higher TOT at 15%.

A second separate but related proposed measure would go before voters to alter the TOT with the goal of applying the tax to online travel and booking companies.

The third measure, if approved, would enact a tax on unlicensed cannabis businesses.

Council members have said these proposed tax measures are not intended to impact city residents, but rather tourists and other outside visitors, who are expected to travel to the region for mega events such as the 2026 World Cup, 2027 Super Bowl and the 2028 Olympic and Paralympic Games.

City Councilwoman Monica Rodriguez previously opposed the proposed tax measures.

Rodriguez emphasized that she is leading an effort to apply the TOT to short-term rentals as a way to encourage tourists to use hotels for their stays. She argued it would also discourage some property owners from using their housing units for short-term rentals and place those units back on the market for long-term use.

The City Council made changes to its short-term rental ordinance in previous years, which Rodriguez said only created “extra hurdles” and “instability” for the hotel industry.

“Now we’re going to tack on more added costs. I think it creates a situation where, frankly, even if you’re talking about a couple of percent differences, people have options in Burbank and other neighboring cities for their hotel nights,” Rodriguez said.

Rodriguez said that she couldn’t support the proposed TOT increase without having more conversations about how officials would identify cost savings in homelessness spending.

Council members noted that they could reduce the TOT in the future without having to ask voters.

For over a year, City Administrative Officer Matt Szabo and Diana Mangioglu, the city treasurer and director of finance, have explored ways to increase general fund revenue, citing a need to bolster the city’s budget amid financial challenges.

The city closed a nearly $1 billion deficit and avoided thousands of layoffs last June caused by overspending, rising liability payouts, and restoring Pacific Palisades following the devastating Palisades Fire.

These top financial advisors said the so-called cannabis business parity tax measure would amend the tax code to ensure unlicensed marijuana businesses are subject to the same liability as licensed operators.

The Office of Finance projected the tax would generate $60 million to $80 million annually, though revenue would likely diminish over time as enforcement and closure of illegal businesses occur.

While further details would need to be hashed out on how the city would enforce the tax, Matt Crawford, assistant director of finance, previously said the focus would be on collections and taking businesses to court to pay the liability.

Crawford added that the Office of Finance would track ownership, leases, and a lot of paperwork to sign up illegal cannabis businesses for tax compliance.

Susan Shelley, vice president of communications for the Howard Jarvis Taxpayers Association, previously criticized the city’s attempts to raise taxes in an email to City News Service.

“The city government is guilty of reckless overspending. Before considering tax increases, the City Council and the mayor should take a hard look at their priorities. Why did they approve a Convention Center renovation plan that is so unaffordable even the controller wondered where the city would find the money to pay the financing costs?” Shelley said in her email.

“Why has the controller not been allowed to audit the mayor’s homelessness program, Inside Safe? Why is the fire department so dangerously underfunded that the firefighters’ union is sponsoring an initiative to raise the city’s sales tax from 9.75% to 10.25%? What has the city negotiated with LA28, if anything, to protect city taxpayers from being stuck with the bill for Olympics-related costs?”

“Raising hotel and parking taxes will likely lead to reduced city revenue as tourism and retail sales are hurt by escalating costs that burden visitors and lead them to visit nearby cities where costs are not as high,” Shelley added.