OJAI : City Council Votes to Raise Motel Bed Tax

The Ojai City Council has voted to increase its resort and motel bed tax from 8% to 10% in a controversial move aimed at paying for a steep hike in the cost of law enforcement.

The council approved the higher tax Tuesday evening as it approved a $6.39-million budget for the fiscal year beginning Friday.

Ojai motel and resort owners were granted one concession by the council, a 30-day delay before collections of the new tax begin in August.

Upset business owners during Tuesday’s public hearing argued for at least a 90-day reprieve. Owners said they expect to have to absorb increased costs to customers who have made advanced reservations at their lodges. They pleaded for time to print up new materials.

“I’m disappointed,” said Ben Larner, owner of Best Western Casa Ojai. “Thirty days will help, 90 days would be better.”

The bed tax increase was expected to bring $170,000 to the city, more than covering a projected $130,000 jump in law enforcement costs. It has not been calculated how much revenue will be lost because of the 30-day delay.

Ten Ojai hotels will be affected by the tax increase, officials said, adding between $1.10 and $5 per day to bills.

The council at first split on delaying implementation of the bed tax. Two members backed a 90-day reprieve, but two others said the city could not afford the loss of any city revenue, especially since Ojai is planning costly litigation to challenge the Weldon Canyon Landfill initiative.