Because the one guiding principle of government in California is that you do not pay enough in taxes, a new one is coming. Businesses will be forced to collect it from anyone who ever enjoys a concert at the Hollywood Bowl, a show at the Pantages, a movie at the El Capitan or the ArcLight Cinemas, dinner at Musso & Frank Grill or lunch at the In-N-Out Burger near the Chinese Theatre.
Get ready to pay the new Hollywood Visitors Tax.
This is happening in the “Hollywood” that is a community in the city of Los Angeles. Businesses in L.A. already pay a gross receipts tax for the privilege of watching the city government fail to provide basic services such as maintaining clean, unobstructed, safe sidewalks.
And there is already an assessment on Hollywood business property owners from the Hollywood Entertainment District Property-Based Business Improvement District (PBID). It collects more than $8 million per year from property assessments, managed by an entity called The Hollywood Partnership. About 77% of the $8 million is spent “primarily funding clean and safe services” that include “street sweeping, pressure washing and the removal of trash from public rights of way throughout the district.”
That’s according to a 2024 request for proposals put out by The Hollywood Partnership, then looking for a consultant to draw up a Tourism Improvement District (TID) to collect additional assessments. The current funding is simply “insufficient,” it states. “As a singular example, the Walk of Fame is pressure washed just twice weekly though the intensity of foot traffic and aging infrastructure dictates that daily pressure washing would be necessary in order to ensure the best pedestrian experience.”
It’s the “aging infrastructure” that’s making the sidewalks in Hollywood filthy? Or is it that city officials do little or nothing to stop the problems that constantly increase the need for cleaning and security?
A January report by the staff of The Hollywood Partnership discussed the results of a November survey of Hollywood “stakeholders.” The factors cited as having the “greatest negative impact” were “homelessness, crime and safety, cleanliness,” as well as “vacant or poorly maintained buildings,” also known as businesses that closed or left.
The new consultant, a Sacramento firm called Civitas Advisors, has drawn up the map and assessment rates of the proposed Tourism Improvement District, which was quickly renamed the “Neighborhood Reinvestment Program” and is now called “Scene Change.” George Carlin could have done twenty minutes on this.
According to information posted on the StopTheHollywoodTID.com website, “Zone A” rates will be charged to ground-floor businesses on Hollywood Boulevard between La Brea and Gower, and on Vine Street between Sunset and Franklin. In Zone A, hotels will pay 3% of their gross receipts in addition to all the other taxes and assessments they currently pay. Food and beverage businesses and attraction/entertainment businesses will pay 2.5%. All other businesses will pay 0.5%.
“Zone B” sweeps in the Hollywood Bowl and extends down Highland to south of Sunset, extending from La Brea on the west to the 101 freeway on the east. Hotels in Zone B will pay 2.5%, food/beverage and attraction/entertainment businesses will pay 2.0%. All other businesses in Zone B will be excused from paying an assessment.
In fact, none of the businesses will pay these assessments. They’ll show up as extra charges paid by the people who buy tickets to concerts, plays and movies, who have lunch or dinner at nearby restaurants, who park their cars in nearby lots, who buy a cup of coffee or a soft drink, or a glass of wine, or a candy bar. Businesses will have to collect the charges, similar to sales taxes.
Tourism improvement districts are typically funded with hotel charges that tourists pay, but this proposal will bite into the wallets of local residents who buy tickets to shows and go to restaurants and bars in Hollywood.
An informational town hall meeting will be held on Thursday, April 2, from 10 a.m. to noon at Ovation Hollywood, 6801 Hollywood Blvd., Suite 513. You can find the RSVP link at StopTheHollywoodTID.com or hollywoodpartnership.com/about/scene-change
Although consumers will pay, only businesses can vote, probably later this year.
Maybe consumers should take it up with the mayor.
Write Susan@SusanShelley.com and follow her on X @Susan_Shelley