Imperial Beach Transient Occupancy Tax

Transient Occupancy Tax(TOT), often known as hotel tax, or lodging tax, is a type of tax imposed on the visitors when they rent a room at a lodging business, such as a hotel, short-term vacation rental, or campground usually for less than 30 days. In California, by California Revenue and Taxation Code 7280, the power to levy the Transient Occupancy Tax authorizes to cities and and counties. The TOT that the county levies only applies to the unincorporated areas of that county. In addition, voter approval is required for any city or county in California to levy new or increase the TOT. For TOT imposed for general government purpose, i.e, the tax goes to general fund and is spent toward various categories in general fund, a simple majority of electorate voting is required. For TOT imposed for special purposes, a two/third electorate voting is required.

Background

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Transient Occupancy was introduced to the cities in California as early as the mid-twentieth centuries. Imperial Beach established the TOT in 1965. In comparison, San Diego City established TOT in 1964, Chula Vista in 1973, and Carlsbad in 1984. Measure G was passed in 1990 in a simple majority vote, thereby raising the TOT of Imperial Beach from 8% to 10%. In the same year, two other cities in the San Diego County also had their TOT measure passed: Vista and La Mesa. By 2022, all 18 incorporated cities in the San Diego County have enacted TOT. The highest TOT rate is owned by Solana Beach, 13%. In contrast, Lemon Grove has the lowest TOT rate in the county, 6%. 14 out of 18 cities in the County currently has 10% TOT rate.

The TOT rate of Imperial Beach has remained as 10% from 1990 to 2022. In November 2021, the City Council has discussed several potential options for increasing general fund revenue, which includes increasing the TOT rate.