Occupancy Tax on Transit May Increase

To make up for funds lost when voters in June repealed its Utility Users Tax, the Agoura Hills City Council began discussions this week to put an increase in its Transit Occupancy Tax on November’s general election ballot.

The council took no action on a utility tax, instead instructing staff to draft a resolution to raise the occupancy tax from 8% to an amount not to exceed 12%.

Four of the five council members must vote on Aug. 7 to finalize the resolution, which may not happen.

At least two councilmen this week expressed reluctance to vote it onto the fall ballot.

“I sympathize with Radisson for being the only hotel in the area and bearing the brunt of any tax,” said Councilman Denis Weber, who originally asked that a new utility tax be discussed at this week’s meeting.

“The utility tax,” Weber said, “was a very fair assessment on everyone in the city for use in the city. To put the burden [of an occupancy tax] on only one in town gives me concern.”

Similar taxes in other area cities range from 10% to 12%, but Anthony David, general manager of Radisson Hotel, said he hopes the council would keep the tax at or below 10%.

“Obviously we’d rather not have the tax increased,” he said. “However, if the council feels it’s absolutely necessary to do so, we would like to have them keep us competitive with other hotels in the area.”

The council had discussed increasing the hotel bed tax when it introduced the Utility Users Tax in 1994, but Radisson officials convinced the council then that the burden of both taxes would be too much for the company.

“With the utility tax no longer in effect, we’re looking at other revenue streams that cities are doing to replace what the state has taken away,” said Councilwoman Fran Pavely. “Our transit tax is far lower than anyone else, so that is one option we have.”