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Costa Mesa directs staff to study hotel tax and business license tax options for Nov. 2026 ballot
Summary
Council voted 4–2 to direct staff to conduct a comprehensive review of two potential November 2026 ballot measures: a change to the transient occupancy tax (TOT) and a modernization/increase of the business license tax; staff said each 1% TOT yields about $1M/year and that the business license tax has not been significantly updated since 1985.
The City Council on Dec. 2 authorized staff to study two potential general‑fund ballot measures for the Nov. 2026 ballot: (1) an adjustment to the transient occupancy tax (TOT), commonly known as the hotel tax, and (2) a restructuring or increase of the business license tax.
What staff proposes to study: Finance staff recommended a comprehensive review to model revenue outcomes, equity effects and likely voter…
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