Pass: 522,354 / 60.69% Yes votes ...... 338,288 / 39.31% No votes

See Also: Index of all Measures

Summary Prepared by League of Women Voters of L.A. County:

THE SITUATION
In January 1991 the Transient Occupancy Tax (TOT) was increased from 10% to 12%, adding about $2.1 million to the county general fund annually. The tax applies to temporary occupants of hotels, motels, and other places of lodging within the unincorporated County of Los Angeles.

In fiscal year 2011-2012 TOT revenues contributed $12.4 million to the Nondepartmental Revenue Budget. This revenue supports county-wide general fund services such as parks, libraries, senior services, and law enforcement, but is not limited to any specific use.

Case law indicates that voter approval may be needed for certain taxes imposed after 1990. On this basis, current litigation is challenging the TOT increase. Measure H asks the public to affirm the current 12% rate, while exempting those referred for emergency shelter and certain individuals traveling on government business, as well as those staying over 30 days.

Other cities in Los Angeles County charge similar or higher hotel taxes: Los Angeles, Santa Monica, Inglewood, 14%; Pasadena, 12.11%; Long Beach, Hawthorne, Monterey Park, 12%.

THE PROPOSAL
Measure H would

• Continue the existing increase in TOT from 10% to 12%, approved by the Board of Supervisors in 1990.
• Exempt emergency shelter referrals from Los Angeles County, County affiliates, or State agencies from the tax.
• Provide exemptions pursuant to federal law for employees of federally regulated agencies such as the Red Cross, Amtrak, and the U.S. Postal Service, while traveling on official government business.

WHAT A YES OR NO VOTE MEANS
A YES vote means that the TOT would remain at 12% and the TOT contribution to the county general fund would continue at the current level.

A NO vote means that the TOT tax would revert to 10%, the 1983 rate, and the county general fund would be reduced by about $2.1 million each year.

SUPPORTERS SAY
Measure H does not impose a new tax and does not increase the TOT rate; it simply keeps the TOT tax in unincorporated Los Angeles County at its current rate.

The hotel tax is charged to tourists, out-of-town businesspeople, and other visitors staying in unincorporated areas of the County. Many other cities in Los Angeles County impose similar or higher taxes.

Revenue from the TOT supports important County services such as parks, libraries, senior and emergency services; unless the current rate is approved, services dependent on the revenue will have to be cut.

OPPONENTS SAY
No arguments against the measure were filed.

Impartial Analysis from John F. Krattli, Acting County Counsel

Approval of Measure H would amend and readopt an existing County ordinance to authorize continued, and ratify past, collection of a Transient Occupancy Tax ("Hotel Tax"), at a rate of 12%, on occupants of hotels and motels within the unincorporated area of the County of Los Angeles.

The Hotel Tax is a general tax which provides funding for essential government services including parks, libraries, senior services, law enforcement, and other general fund services. The Hotel Tax would continue to be imposed on every temporary, or transient, occupant of a hotel, motel or other place of lodging within the unincorporated area of the County, and would be imposed at the current rate of 12%, which rate was adopted by ordinance by the Los Angeles County Board of Supervisors on December 18, 1990.

This measure clarifies the definition of "transient" to exempt any person occupying space in a hotel or motel for a period of time longer than 30 days upon written agreement entered into during the initial 30-day stay. The Hotel Tax would expressly exempt emergency shelter referrals from public agencies and employees of federally-related agencies who are travelling on official government business.

The current Hotel Tax rate of 12% has been in effect since January 1991. From August 1983 until January 1991, the Hotel Tax rate was 10%. The present Hotel Tax rate is the subject of existing litigation. An adverse decision in that litigation may result in reverting the Hotel Tax to its pre-1991 rate of 10%, which would reflect a reduction of approximately $2.1 million per year in general funds, and may also result in refunds of 2% of the tax paid to those persons who occupied hotel or motel rooms in the unincorporated area during certain periods of time.

Approval of this measure ratifies the current rate and approves the past collection of the Hotel Tax from transients who occupied hotels and motels in the unincorporated area of the County of Los Angeles.

This measure requires a majority vote of the qualified voters in the County of Los Angeles who cast votes in the election.