🎯 STRisker: Bulletin - Los Angeles, CA
Short-Term Rentals Could Pay More as LA Raises the Hotel Tax
LA Eyes Higher Hotel Tax — Short-Term Rentals in the Spotlight
Los Angeles is tightening the screws on short-term rentals, and the latest move could hit hosts right in the wallet.
On Tuesday, the City Council voted 13-1 to advance a proposal that could raise the transient occupancy tax (TOT) — the so-called “hotel tax” — from 14% to 16%. That tax doesn’t just hit hotels and motels; it also applies to short-term rentals and hostels.
The move comes as city officials scramble to close budget gaps and prepare for major events like the 2027 Super Bowl and the 2028 Olympics.
A temporary 2% surcharge is also on the table, which would push the TOT to 18% during those years. For larger hotels, the rate could climb as high as 20%.
Councilwoman Monica Rodriguez stood out as the lone “no” vote, voicing concerns that the tax hike could ripple into programs like Mayor Karen Bass’ Inside Safe initiative, which contracts with hotels to house unhoused residents. Rodriguez argued that if hotels raise prices to cover higher wages and taxes, the city could end up paying more for temporary housing.
“I really believe that before we can really have a serious conversation and present to the taxpayers this idea that they should be paying more that we do better with the money that they’ve entrusted us with,” Rodriguez said.
She suggested shifting the burden to short-term rentals instead, pointing out that platforms like Airbnb have reshaped the housing market but often escape stricter regulation.
The council also referred a proposed vacation rental ordinance to committee. That ordinance could raise the citywide cap on vacation rentals and tighten regulations.
Community voices remain divided. Supporters say higher TOT is a fair way to capture revenue from tourists and short-term rental guests, especially during peak event seasons. Critics warn that raising taxes could drive visitors to neighboring cities with lower rates, hurting local tourism and small rental hosts.
With the City Attorney’s Office now tasked with drafting ballot measures, residents should expect to see these proposals on the June primary ballot.
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