CALABASAS : Bed Tax Exemption Vote Is Tonight
The Calabasas City Council will vote tonight on whether to do away with an old ordinance that exempts federal and state officials from paying a 12% hotel bed tax when they come to the city on business.
Mayor Karyn Foley said she supports the idea of doing away with the exemption.
“I don’t think it’s fair,” she said. “We would like to get as many tax dollars as we can.”
City Manager Charles Cate recommended the idea of doing away with the ordinance, which Calabasas adopted from Los Angeles County when it incorporated in 1992.
City officials did some research recently and discovered that the state attorney general ruled three years ago that state officials must pay the tax, Cate said. City officials also learned, Cate said, that the U.S. Supreme Court ruled in 1986 that federal employees are not exempt from the tax.
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