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Board approves renewed, expanded Tourism Improvement District; assessment to include short‑term rentals
Summary
After a public hearing and an amendment to correct statutory citation, the Board of Supervisors approved a renewed and expanded Tourism Improvement District that raises the downtown hotel assessment and expands assessed businesses to include short‑term rental hosts. Ballot tabulation showed no majority protest.
The San Francisco Board of Supervisors voted on Sept. 13 to renew and expand the city’s Tourism Improvement District (TID), approving the district’s renewal, a modest increase in the assessment rate in central hotels and the addition of short‑term rental hosts to the assessment and governance structure.
The renewal, which will begin Jan. 1, 2024 and run through Dec. 31, 2038, increases the assessment in Zone 1 (central hotels) from 1.0% to 1.25% and raises Zone 2 from 0.75% to 1.0%, according to the presentation by the Office of Economic and Workforce Development. Joe D’Alessandro of SF Travel told supervisors the increase will help build an annual fund—targeting roughly $10 million per year—to incentivize business to book the Moscone Convention Center and to market San Francisco globally.
The renewal also expands the set of assessed businesses to include short‑term rental hosts using platforms such as Airbnb, Booking.com and Expedia, and it modifies TID management board membership to add a short‑term rental host representative and representatives from the city controller and city administrator.
Supervisor Peskin offered a technical amendment to correct an incorrect statutory reference in the ordinance and to replace it with the appropriate Streets and Highways Code citation; the board approved the amendment. The Department of Elections reported the returned weighted ballots voting against the district equaled 4.43%, below the threshold for a majority protest, and the board approved the renewal as amended.
The public hearing drew dozens of in‑person and remote speakers, including hotel managers, cultural and nonprofit leaders and many short‑term rental hosts and platform representatives. Supporters said the TID is essential to market San Francisco, draw conventions and visitors, and support downtown jobs and neighborhood businesses; several speakers from hospitality management cited 2019 figures showing tourism supported tens of thousands of jobs and generated billions in visitor spending. Some short‑term rental hosts urged administrative simplicity in reporting and questioned fee parity with hotels; opponents and some community speakers urged the city to address street cleanliness and safety first.
Action: The board approved the resolution to renew and expand the Tourism Improvement District as amended (roll‑call recorded 10 ayes; one supervisor absent for the roll call), and the departmental ballot tabulation showed no majority protest. The renewal takes effect Jan. 1, 2024.
Ending: The board concluded the public hearing, approved the technical amendment and adopted the renewal and expansion; supervisors and presenters emphasized that TID funds will be used to promote San Francisco and to support recovery of the tourism sector.
