Measure TT

In plain language

Measure TT changes rules for Santa Monica's hotel tax. This is called the transient occupancy tax. A YES vote keeps the current tax rates the same. But it lets the City Council create special "Major Event Periods." During these periods, the tax applies to lodging paid for by companies. This is for stays over 30 days. The Council could also adjust the hotel tax rate for those stays. A refund would require a stay of at least 31 days in a row. The city could also write rules to carry this out. A NO vote keeps the current rules with no changes.

Impartial analysis

The City of Santa Monica imposes a Transient Occupancy Tax (“TOT”) on lodging charges. The current rates are 15% for hotels and motels and 17% for home-shares. TOT is a general tax; its revenue may be used for any municipal purpose. Current law defines a “transient” to include an individual, corporation, and other organization obtaining lodging for 30 days or less. Lodging providers collect TOT on those rentals and may return it if the occupant later completes 31 consecutive days in the same room. This measure would retain the existing tax rates and amend the definition of “transient.” A natural person would remain a “transient” only for stays of 30 days or less. The measure provides that a corporation or other legal entity (“Corporate Entity”) is a “transient” subject to initial TOT collection when it pays or is obligated to pay any portion of a room rental, exercises a right of occupancy, or is entitled to occupancy under an agreement, regardless of booking length. For a Corporate Entity booking lasting more than 30 days, TOT may be returned if the same natural person occupies the same room for at least 31 consecutive days. By contrast, a 45-day Corporate Entity booking occupied by three different individuals for 15 days each would not qualify for return because no individual occupied the same room for at least 31 consecutive days. The measure further authorizes the City Council, by resolution, to establish a Major Event Period for a major event or related events reasonably expected to materially increase tourism or hotel demand in the City or surrounding region over an extended period. The period could begin before and end after the event. During a Major Event Period, a hotel would not be required to return TOT imposed on a Corporate Entity, regardless of booking length. In addition, during all or part of the period, the Council could temporarily set the hotel and motel TOT rate for Corporate Entity bookings of any length at any rate from 0% through 15%. The 15% rate would automatically resume when the adjustment expires. The measure would not authorize reducing the 17% home-share rate. The Finance Director could establish exemptions for lodging paid in whole or in part by a Corporate Entity when a natural person occupies or has the right to occupy it for at least 31 consecutive days. Such exemptions may apply when the occupancy is necessitated by displacement from a residence caused by fire, natural disaster, or other casualty; extended medical treatment; comparable circumstances beyond the occupant’s control; or other approved grounds. The Finance Director also could adopt administrative rules and documentation requirements for returns, refunds, and credits. Claims would remain subject to a one-year deadline. The measure was placed on the ballot by the Santa Monica City Council. A “yes” vote favors adoption; a “no” vote opposes adoption. A majority of votes cast on the measure is required for passage. Heidi von Tongeln City Attorney

Official ballot arguments

Filed for the official voter guide by each side, printed as submitted.

The official arguments will appear here once both sides’ arguments are on file.