OJAI : Inns Criticize Plan to Raise Bed Tax

A proposal to increase Ojai’s bed tax to offset the rising cost of law enforcement has drawn criticism from hotel and motel owners who said they want to see a portion of the money spent on marketing Ojai to visitors.

Facing a 9% increase in the cost of policing, city staff members have proposed increasing the current 8% transient-occupancy tax, or bed tax, to 10%, which would generate an estimated additional $170,000.

The council will take final action on the proposal at its June 28 budget hearing.

But the Chamber of Commerce and some local hotel and motel owners have said an increase would eliminate Ojai’s competitive edge over other tourist towns like Santa Barbara and Carmel, which both have 10% bed taxes.

“It doesn’t make sense to raise the cost of something when it’s not selling,” said Nadine Turner, who works for a firm that manages the Best Western Casa Ojai Motel.

To balance a potential loss in clientele as a result of the tax increase, city staff and hotel owners have suggested that some of the money generated by the levy be spent on advertising the town to boost tourism.

But some City Council members told the audience of about a dozen local merchants and residents at Tuesday’s meeting that tourists won’t come to Ojai unless the small town’s security and quality of life are preserved.

“We have got to have the money to provide the services,” said Councilwoman Nina Shelley. “If we don’t provide the services, the tourists aren’t going to come.”

Councilman James Loebl agreed, adding that the best advertisement would be keeping a dump out of neighboring Weldon Canyon.

“We expect to be engaged in a lawsuit in the near future,” Loebl said. “If we lose that lawsuit, there will be no such thing as marketing these hotels and this community.”