Prop TT

Why Thrive LA opposes Prop TT

Measure TT raises the City of Los Angeles hotel tax (Transient Occupancy Tax) from 14% to 16% through 2028, then locks in a permanent increase to 15% thereafter. It applies to hotel guests and short-term rental guests staying 30 days or fewer. Revenue goes to the city's general fund with no earmarks, no spending restrictions, and no accountability mechanisms. Vote No. Every tax increase reduces economic activity, and this one targets one of the city's most important industries at exactly the wrong time. Los Angeles already competes with cities across the country for tourists, conventions, and business travelers. Adding two percentage points to the cost of every hotel and short-term rental stay makes the city measurably less competitive. The Hotel Association of Los Angeles, the Northeast Los Angeles Hotel Owners Association, and the Howard Jarvis Taxpayers Association all oppose the measure, and they are right to do so. The timing is deliberately cynical. Proponents are banking on the 2027 Super Bowl and the 2028 Olympics to mask the impact of the rate hike. When demand is high, a tax increase is easier to hide. But the temporary 16% rate is not the real story. The permanent 15% rate has no sunset. It persists long after the Olympics leave town, saddling the hospitality sector and small property owners who operate short-term rentals with a higher cost structure indefinitely. For individual hosts listing a unit on Airbnb or VRBO, this is a direct hit to their bottom line and a disincentive to participate in the short-term rental market at all. The ballot language waves at popular spending categories like 911 emergency response, fire protection, street repairs, and parks. None of these are guaranteed. The revenue flows into the general fund and can be spent on anything the City Council decides. New revenue with no identified cuts, no dedicated purpose, and no oversight is not fiscal policy. It is a blank check. Los Angeles does not need another tax increase. It needs spending discipline. Vote No on Measure TT.