Rancho Palos Verdes Could Hike Hotel, Golf Course Taxes By 3-5%

RANCHO PALOS VERDES, CA — At its most recent meeting, the City Council put in motion a process where the city would educate residents about a potential rise in hotel and golf course usage taxes, if the Council chooses to pursue them.

In a motion that was approved 5-0 at its March 17 meeting, the Council voted to approve a contract that would inform residents about a potential increase in the tax that users of private golf courses pay, from 10% to 15% if, at a future meeting, the Council votes to support a ballot measure to asking voters whether to approve or reject such a tax.

If such an increase is approved and put into effect, city leaders say, it would provide an estimated $400,000 annually for Rancho Palos Verdes until ended by another taxpayers' vote.

The money from the current tax is used by the city to: pay for police patrols; reduce trash and pollutants from flowing into coastal waters and onto beaches; park maintenance; and other city services.

The city's hotel levy, officially known as the Transient Occupancy Tax, or TOT, is paid exclusively by overnight hotel or motel guests. Under consideration is an increase from 10% to 13%, which would still be less than the 15% tax levied by nearby cities, including Santa Monica and Manhattan Beach, according to Palos Verdes officials.

Richard Bernard, a partner with FM3 Research, a company that conducted a study on behalf of the city regarding the potential taxes, said that the hotel tax would be likely to receive voter approval in a November election because it wouldn't be paid by residents.

“People like taxes that aren’t coming out of their pockets, because it’s going to benefit them without potentially any downside," Bernard explained.

As part of its vote, the City Council approved hiring a consultancy, The Lew Edwards Group, to conduct outreach to city residents to inform them about the possibility of a ballot measure or measures and educate them regarding what voter approval or non-passage of the taxes would mean for the city.

The Council authorized a not-to-exceed amount of $60,000 for the consultancy work.