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What’s at stake
This ballot measure would raise hotel taxes by 2% in advance of the 2028 Olympics, then partially lower them by 1% after the Olympics conclude.
The hotel tax is referred to officially as the transient occupancy tax, so think TT, for Transient Tax.
Official language
Here's the official title: "Funding For City Services Through Modifications To The Transit Occupancy Tax. Proposition TT"
Here's the text you’ll see on your ballot:
Shall an ordinance be adopted to fund general City services, such as street/sidewalk repairs, 911 emergency response, fire protection, and parks, by: increasing the transient occupancy tax, currently 14% paid by hotel and lodging guests, to 16% through 2028 and then 15% thereafter; and requiring online and other travel companies to collect and remit the tax; generating approximately $22-44 million annually until ended by voters?
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On the ballot June 2, Measure CB asks voters to impose a tax on unlicensed cannabis businesses that already exists for licensed establishments. -
On the June 2 ballot, the measure would require online travel companies to be responsible for city hotel taxes.
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With Long Beach voters naming fraud and waste as a major issue, it will be on the elected auditor to identify and address such issues within city government.
What your vote means
- A "yes" vote means: You want to temporarily raise hotel taxes for the Olympics, then partially lower them afterward.
- A "no" vote means: You don’t want to temporarily raise, then lower hotel taxes.
Understanding Measure TT
The Los Angeles city government is facing a budget crisis and, at the same time, is preparing for the 2028 Olympics and hoping the Games will provide sufficient funding to pay for the increased need for city services during the two-week event and also produce enough revenue to boost city services afterward. Hotel taxes are a popular source of revenue because the voters who approve them don’t have to pay them, so they prefer them to sales or other local taxes.
The Los Angeles hotel tax, officially the transient occupancy tax, or TOT, has been set at 14% since 1993. A vote is required to raise it because of 1996’s Proposition 218, California’s “Right to Vote on Taxes Act.”
The Los Angeles hotel tax rate is on par for California cities but higher than in most other U.S. cities. For example, New York City’s hotel tax is 5.875%, plus $1.50 a day.
Measure TT would raise the tax by 2% though Dec. 31, 2028, then drop it by 1% — for a total of 15% — beginning Jan. 1, 2029.
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It would also redefine the taxable room charges to include various add-on fees, including transaction fees and commissions, unrefunded advance reservation deposits, charges for additional services and other charges that are part of a travel package. Working in conjunction with Proposition TC, it would ensure that the tax is based on the full amount the customer pays to online travel companies and booking agents and not just the amount paid directly to the hotel.
How we got here
In 2023, the City Council instructed its legislative analysts and other city staff to report back on how much the city charges in hotel taxes as compared with other cities and how receipts may be affected by the rise of online travel companies. The result was this ballot measure. On Feb. 10, the council voted to put it on the June 2 ballot.
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Bass, who currently serves as the mayor of L.A., covered topics ranging from her homelessness approach to city infrastructure. -
Huang, a Presbyterian minister and community organizer, covered topics ranging from labor management to the size of the LAPD and the homelessness crisis. -
Raman, who currently sits on the L.A. City Council, covered topics ranging from homelessness to labor management.
What it takes to pass
The measure needs a simple majority to pass — 50% plus one.
What people who support it say
- No ballot argument in favor of Proposition TT was submitted.
- Before the vote, Councilmember Tim McOsker said, “I do think that there is a logic that we can explain to the electorate, and to ourselves, that the Olympics create an opportunity to add some jet fuel to our visitor-serving community.”
What people who oppose it say
Nella McOsker, president of the Central City Association (and the daughter of Tim McOsker, City Council member and Proposition TT supporter), said a higher tax would be bad for the hotel and travel business.
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“At a time when you’re seeing these declines in demand and losing on tax revenue year over year to the magnitude of $20 million, it just seems like a wrong time to impose more burdens on that shrinking base,” Nella McOsker told the Los Angeles Times.
The ballot argument against Proposition TT said the tax increase would push visitors to hotels outside city limits.
“There are better ways to stabilize city finances without weakening one of Los Angeles’ largest private-sector employers and most important economic engines,” according to the opposition ballot argument.
The argument is signed by Councilmember John Lee, Hotel Association of Los Angeles President and CEO Jackie Filla and four others.
Potential financial impact
The City Administrative Officer estimates the tax would generate $44 million for Los Angeles annually through 2028 and $22 million annually afterward.
Further reading
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