SIMI VALLEY : Council to Consider Raising Motel Tax 2%
Hoping to boost city coffers, the Simi Valley City Council has agreed to consider increasing the nightly tax charged on rooms at hotels and motels from 8% to 10%.
Hotel and motel patrons who stay in Simi Valley now pay an 8% transient occupancy tax on top of the cost of a room. The increase would boost the tax to the rate now charged in Thousand Oaks, Ventura and Oxnard.
At the current tax rate, Simi Valley takes in about $450,000 a year, which goes into the city’s general fund, said John McMillan, director of general services.
If approved, the increase would add $100,000 to the annual tax revenue, McMillan said.
Councilwoman Sandi Webb said she objects to the increase because it would place an unfair burden on businesses.
“I think this tax is unfair in the first place,” Webb said.
“Increasing it is just going to make it worse.”
A public hearing on the proposed tax increase will be held at the council’s Aug. 22 meeting.
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