Your guide to L.A.'s Measure TC: tax on hotel bookings by online companies
Key takeaways
- A measure on the June 2 ballot could change that.
- As the city faces another budget shortfall, officials are looking for additional revenue to pay for basic services.
- A related measure also on the ballot raises the tax on hotel rooms in L.A. from 14% to 16% until the end of 2028, then dropping to 15% thereafter.
Print Online travel companies like Hotels.com pay hotel taxes on discounted room prices, not the higher markups they charge customers — a loophole Measure TC would close.The June 2 ballot measure could raise $5 million annually for streets, parks and other city services while helping the struggling hotel industry level the playing field.The L.A. City Council unanimously backed Measure TC, framing it as fair taxation that eliminates what supporters describe as an unfair competitive advantage for online intermediaries. 1 p]:text-cms-story-body-color-text clearfix"> Travelers to Los Angeles may not realize it, but they often pay less in city taxes by booking a hotel room through an online company like Hotels.com or Trivago.
A measure on the June 2 ballot could change that.
Measure TC, if passed by voters, would require online travel companies and other intermediaries to pay the city’s hotel tax based on the markup price they charge to customers, not the discount price they paid for the room.