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Council updates tax code to align with court ruling exempting government travelers from hotel tax
Summary
Following a court decision, the council amended the municipal code to stop taxing federal, state and local government employees traveling on official business; the change passed unanimously and clerk's office said hotels were already advised.
The Los Angeles City Council voted unanimously to amend local law so hotels do not collect transient-occupancy tax from federal, state and local government employees traveling on official business, aligning the municipal code with a court decision and prior administrative practice.
City Clerk staff explained the change resulted from a court case that held such travelers are not subject to the occupancy tax; the administration has already advised local hotels to stop collecting the tax in those circumstances. Council members asked staff how the exemption would be documented, whether city travelers would receive a notification letter to present at hotels, and how audits would be handled; the clerk said hotels must document government-employee exemptions and periodic audits occur.
The council adopted the amendment on a unanimous roll-call vote. Members asked staff to ensure implementation details and traveler notification procedures were distributed to departments that send employees on official business.
