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Los Angeles council adopts 2% transient-occupancy tax increase, preserves option to lower rate later
Summary
The City Council adopted item 37 B on Feb. 11, 2026, approving a 2% transient-occupancy-tax increase tied to upcoming major events, with authority to reduce the rate later; a competing larger-increase motion failed. Council recorded votes and debated hotel competitiveness and uses of revenue.
The Los Angeles City Council on Feb. 11, 2026 adopted a modified increase to the city's transient-occupancy tax, approving option B — a 2 percentage-point increase — while reserving authority to reduce the rate in the future.
Council members opened debate on item 37 after a presentation from the budget committee describing several options. Supporters said option B balanced revenue needs tied to large upcoming events while preserving the ability to lower the tax later if market conditions changed. Opponents warned that raising the TOT risked…
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