Voters to decide if Downey's hotel tax should be increased

Photo by Joan Anderson/DowneyDailyPhotos.com

DOWNEY – Downey voters will decide in November whether or not to increase the city’s transient occupancy tax (TOT) from 9% to 13%.

A TOT, also known as a hotel bed tax, is charged to guests when they rent living accommodations in a hotel, motel, inn, or other lodging for less than 90 days.

The city does not currently allow short term rentals – such as Air Bnb’s – however the TOT would apply to them should the city ever change its policy.

Downey’s TOT was first established in 1965 and last amended (increasing the rate to 9%) in 1998 with voter approval.

Should voters approve the increase, it could result in approximately $95,000 of new General Fund revenue annually.

Council members voted unanimously to place the measure on the ballot.