To: MAYOR AND CITY COUNCIL
From: STEPHANIE MEYER, FINANCE DIRECTOR
TITLE
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DISCUSSION AND POSSIBLE ACTION REGARDING THE CITY'S TRANSIENT OCCUPANCY TAX RATE AND PROPOSED DRAFT BALLOT MEASURE LANGUAGE
DISCUSSION AND POSSIBLE ACTION REGARDING A POSSIBLE UPDATE TO THE CITY'S UTILITY USERS TAX ORDINANCE
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EXECUTIVE SUMMARY
On November 18, 2025, staff provided a presentation to the City Council on the City's current transient occupancy tax (TOT) rate and options to consider increasing the existing tax rate. At that time, Council directed staff to return with a proposed ballot measure to raise the City's TOT rate to up to 15% and provide additional information on TOT measure passage rates, feedback from Redondo Beach hoteliers, and the potential impacts of increases to wages for hotel employees in the City of Los Angeles. This report addresses questions raised by the Council and includes a draft ballot measure with accompanying ordinance revision. It also provides updated information regarding the timing and options to present a TOT measure to voters, including the recommendation to propose a TOT increase to voters at the City's March 2, 2027 regular general election.
Also worth discussing is the Utility Users Tax (UUT) court case filed by the City of Santa Barbara seeking to assess UUT on video streaming services that, if the current ruling holds, would increase all cities' ability to collect UUT. This report shares an update on the status of the Santa Barbara case and provides an opportunity for the City Council to provide direction on possible changes to the City's UUT Ordinance, referenced in Title 8, Chapter 9 of the Redondo Beach Municipal Code, and specifically described as the "Telephone, Gas, Electricity, Water, and Video Users' Tax Law," that if approved by voters, would allow the City to collect UUT on video streaming services and protect/increase General Fund revenue.
Staff recommends the City Council:
1) Receive and file the req...
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