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Planned Hotel Tax Hike Goes Back to Drawing Board

SAN DIEGO-The hope for a hotel tax increase is stuck between the rock of a slumping economy and the hard place of a proposition that would severely limit future tax hikes. Legislators must come up with an answer by November elections.

By Randyl J. Drummer | Updated on October 12, 2001

SAN DIEGO—A council committee has backed away from a proposal to raise the city’s transient occupancy tax. Proponents of the tax are racing to get it passed before Proposition 218, an anti-tax provision on the March ballot that could make future hotel tax increases difficult or impossible. But city officials are also grappling with a soft economy and the Sept. 11 attacks that have hurt the area’s hospitality and tourism industries.

Supporters, led by the San Diego Firefighters Association, want to increase the TOT from 10.5% to 13.5%. San Diego Mayor Dick Murphy, chair of the council’s Rules Committee, directed the city manager to study the proposal.

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