Manhattan Beach City Council approves increase in hotel “bed tax” to fund police department positions | USA Diario

Bed taxPhoto byUSA Diario

The Manhattan Beach City Council has approved an increase in the city’s transit occupancy tax, also known as the hotel “bed tax,” from 12 to 14 percent. The increase is expected to generate $1.25 million annually to fund ten new police department positions, including seven new sworn police officers. The increase was made possible by 2019’s Measure A, in which voters approved TOT increases from 10 percent to up to 14 percent, with the funds earmarked in part for public safety.

According to Finance Director Steve Charelian, the increase puts the City’s TOT in the mid-range of comparable cities, and would impact 12 local hotels and 50 short-term rentals in the city’s coastal area. However, Manhattan Beach Chamber of Commerce CEO David Archer and hotel owner Mike Zislis opposed the tax increase, citing concerns about the impact on hotel competitiveness.

Mayor Pro Tem Richard Montgomery defended the increase, stating that the City had lost revenue during the pandemic and federal relief funds were no longer forthcoming. The motion to approve the increase passed unanimously.

Mayor Steve Napolitano emphasized the need to provide for the city’s endless needs with limited resources and maintain Manhattan Beach’s status as a destination.

The transit occupancy tax increase in Manhattan Beach will bring the City’s TOT rate in line with many other cities in the Greater Los Angeles area. Comparable cities such as Hermosa Beach, Santa Monica, Beverly Hills, and Culver City are also at 14 percent, while Malibu’s TOT is at 15 percent, and the neighboring LAX corridor is at 16.3 percent.

The increase is expected to impact 12 local hotels and 50 short-term rentals in the city’s coastal area. While some stakeholders expressed concerns about the impact on hotel competitiveness, others emphasized the need to fund public safety initiatives and maintain the City’s status as a destination.

Manhattan Beach Mayor Steve Napolitano acknowledged the challenges of balancing the City’s needs with limited resources, but emphasized the importance of providing safety for visitors and residents alike. The City Council approved the increase unanimously.