The ordinance, which had already been approved by the majority of the city's lodging facilities before the City Council vote, calls for the creation of a Hotel Assessment District. All of Laguna Beach's 26 lodging facilities that are subject to the current hotel tax are included in the district, according to City Manager Ken Frank. The new tax will go into effect on July 1.

The tax is expected to generate approximately $640,000 a year, according to Frank. Half the proceeds will go to the Laguna Beach Visitors Bureau, which proposed the measure, and the other half will go to the Laguna Playhouse, the Laguna Art Museum and the Art Institute of Southern California. "This way, when people come here to visit, they will have even more to do," Frank says.

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