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La Palma voters are deciding on Measure P, an increase to the hotel tax

La Palma voters are deciding if a night’s hotel stay in town will cost more in the future.

The city collects an 8% transient occupancy tax, often called a hotel tax, on a night’s stay at a hotel, motel, inn, tourist home or similar short-term rentals. Measure P, now before voters, would bump that up to 12% if approved.

No argument against the measure was filed to accompany ballots, but a fiscal impact statement says it would increase the cost an additional $6 for a $150-a-night hotel bill.

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City officials said they expect the additional tax would generate about $200,000 more in revenue each year. Measure P includes no end date for the increase in tax; it would be in place until changed by a future public vote.

“Our city continues to see more out-of-towners flocking to regional attractions, including local parks, beaches, and theme parks. These tourists have increased traffic and demand on La Palma’s city services, including community facilities, sidewalks and our local police,” a ballot argument in favor of the measure says. “Measure P ensures visitors to our hotels pay their fair share for city services.”

A simple majority of votes is needed to approve the measure.

Source: Orange County Register

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