The Placentia Hotel Tax, or Measure L, proposes to increase the city’s transient occupancy tax (TOT) from 10% to 14%.
The measure is expected to generate approximately $715,000 annually, city officials said. Revenue would go into the city’s general fund and could be used for services in the city such as the police patrols, fire protection, 911 response, and road repairs mentioned in the measure.
Measure L also contains accountability safeguards, including annual independent audits of tax proceeds and expenditures, and spending reviews by the city’s existing Citizens’ Oversight Committee, which is required to submit an annual report.
The rate could not be raised above 14% without future voter approval, and the tax would remain in effect unless repealed by voters. If approved, the measure would take effect Jan. 1.
Supporters say the tax, which is charged on an overnight’s stay, would be paid by guests at hotels, motels, and short-term rentals in Placentia, and is not a tax on residents’ property or everyday expenses.
Supporters include Robert S. McKinnell, chair of the Citizen’s Oversight Committee, and Kenny Binnings, president of the Placentia Chamber of Commerce, who said in the argument they penned to go with the ballot that the city’s current rate “has not kept pace with inflation” and falls below other Orange County cities. They call the measure a “fair, common-sense way to increase revenue” that ensures “visitors pay” while “residents benefit.”
There was no ballot argument submitted against the measure.
Measure L requires a simple majority vote in favor to pass.