ORANGE : Bed-Tax Resolution to Be Considered
An increase of two percentage points in the city’s hotel “bed tax” could bring in an additional $425,000 in revenue next year, according to a report presented to the City Council this week.
The bed tax, or transient occupancy tax, is an amount added to hotel bills by local governments. The council wants to raise Orange’s bed tax from 8% to 10%, and will consider a resolution to put the issue on the November ballot at its July 10 meeting.
The tax was defeated in 1988 because voters misunderstood the issue, said Councilwoman Joanne Coontz. She requested that the language used for the transient occupancy tax resolution be carefully worded to make sure voters “will not think we’re talking about taxing the homeless.”
Most cities in Orange County have a bed tax rate of 8% to 9%, City Finance Director Ted L. Schoettger said.
Brea, Buena Park, Fullerton, Huntington Beach and Placentia each charge 10%. Beginning July 1, Anaheim will charge 11%, the highest bed tax in the county, Schoettger said.
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