Redondo Beach directs staff to prepare TOT ballot measure for March 2027 and to review UUT for streaming
Loading...
Summary
Council voted unanimously to ask staff to prepare draft ballot language to raise the transient occupancy tax (up to 15%) for a March 2027 election and to review the city’s utility users tax to determine whether streaming/video services can be captured, pending the outcome of a recent Santa Barbara appeals decision.
The Redondo Beach City Council voted unanimously to direct staff to prepare a transient-occupancy-tax measure for the city’s March 2027 election, and to review the municipal utility users tax (UUT) for possible application to streaming/video services.
Finance Director Stephanie Meyer reviewed prior council direction and provided draft ballot text options. She told the council that Proposition 218 constrains local tax timing: "Prop 218 requires that we put a tax measure on the ballot at a regularly scheduled general election for the local governing body," meaning a standard local tax vote would fall on the city’s March 2027 general election unless the council unanimously declares a fiscal emergency to accelerate placement.
Meyer also summarized outreach to local hoteliers (site-specific hotel owners) who said they did not view an increase within regional norms as a significant locational issue. On the UUT, staff noted a recent Court of Appeals decision in favor of Santa Barbara—affirmed on rehearing—finding that municipal video taxes could apply to some streaming providers; the city will monitor possible appeals to the state Supreme Court and review its ordinance if the ruling survives. "The Court of Appeals ruled in the city's favor," Meyer said when summarizing the case status.
City Treasurer Eugene Sullivan said the administrative model would normally have providers collect and remit the tax: "The providers would collect the tax and remit to the city," he said, describing current reporting practices for telephone, cable and other taxable utilities.
The council approved by unanimous vote the staff direction to prepare the ballot measure language (cap up to 15 percent to be set administratively after voter approval), to return with a fiscal-impact estimate and to monitor the Santa Barbara litigation as staff evaluates potential UUT changes.
Next steps: staff will prepare ballot language and supporting financial documentation, provide draft language to the council for review, and continue legal monitoring of the Santa Barbara appeals process before taking any collection action for streaming services.
