San Diego to Raise Hotel Room Tax to Fund New Sports Arena
The San Diego City Council has voted overwhelmingly to increase the city’s hotel room tax to raise money for a downtown sports arena and renovations at the Convention Center.
Monday’s vote raises the transient occupancy tax, or TOT, 1.5 cents, to 10.5 cents on the dollar, beginning Aug. 1.
Mayor Susan Golding and tourism officials have lobbied for the tax hike, claiming that it is crucial to the development of the downtown area.
“I want to thank the council,” Golding said after the vote. “I think the step that the council has taken today is a decision to make a major investment in this city, produce thousands of jobs and produce millions of dollars in additional TOT money.”
The measure, passed by the City Council 7 to 1, had been opposed by advocates of affordable housing because none of the revenue is slated to go into the city’s Housing Trust Fund. Instead, the money is earmarked for arts and museum programs and improvements at Balboa Park, among other projects.
City Manager Jack McGrory has said the hotel tax increase could net the city an additional $6 million in its first 10 months.
The downtown growth plan calls for $6.9 million to be used next year on the Convention Center expansion.
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