Impact of San Diego’s proposed hotel-tax increase measure

SAN DIEGO (KUSI) – In March, city voters will finally weigh in on a proposed hotel-tax hike to fund a Convention Center expansion plus homeless initiatives and road repairs.

Voters within the city of San Diego will have to decide if the city can increase its hotel-room tax rate. When people stay in hotels within the city of San Diego right now, they pay 10.5 percent to the city for what’s officially called the Transient Occupancy Tax. The hotel industry also added its own 2 percent levy on top of that called the Tourism Marketing District. Thus, visitors pay effectively 12.5 percent.

The initiative would increase taxes for those visitors rather than city taxpayers. The amount tacked onto hotel bills will range from 1.25 to 3.25 percent.

The measure is designed to deliver a Convention Center expansion they believe will bring additional hotel visitors and jobs.

KUSI contributor and AM 760 Radio Host Mark Larson was in studio to discuss the potential impact of the proposed hotel-tax hike and the expansion.