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Fortuna City Manager says council will consult lodging industry before considering bed-tax increase
Summary
The city manager reported the council discussed possible changes to the transient-occupancy tax and said the Humboldt Lodging Alliance will be included in future conversations; Fortuna's current combined rate is 12% (10% city rate plus a 2% Humboldt Lodging Alliance assessment).
The City Manager reported that a revenue-generation ad hoc meeting discussed potential changes to the transient-occupancy tax (commonly called the bed tax) as one option for new revenue. The manager said any consideration of an increase would include outreach to the Humboldt Lodging Alliance (HLA) to determine whether local lodging businesses would support a change.
When a council member asked how Fortuna's rate compares with nearby cities, staff replied, "We're all the same. Same? So we're at 10% and then HLA has a 2% addition on top. So it's a total of 12%." That response was recorded in the meeting transcript and attributed to staff.
The city manager said staff are compiling strategic-plan feedback and will return with a report that may include revenue-generation options for council consideration; no change to the transient-occupancy tax was proposed or adopted at this meeting.
