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Westminster council asks staff to prepare November ballot measure to raise hotel tax; no rate chosen
Summary
Citing regional moves and potential revenue, the council directed staff to prepare ballot language and return with specifics before the August 7 deadline to place a measure on the Nov. 26 ballot. Staff estimated each 1% increase to the transient-occupancy tax would generate about $113,000 annually.
The Westminster City Council on June 24 directed staff to prepare a potential ballot measure for the November 26, 2026 election that would increase the city’s transient-occupancy tax (TOT, or "hotel tax"). Council did not select a rate at the meeting; staff will present draft language and refined estimates at a special meeting before the county filing deadline on August 7 if the council wishes to proceed.
Staff noted Westminster’s current TOT rate is 8% (among the lower rates in the region) and presented modeled additional revenues: an increase of 1 percentage point would raise about $113,000 annually, 2 points about $226,000, 4 points about $452,000, and 6 points about $678,000—estimates staff said are approximate and based on FY 2024–25 collections.
Regional context motivated the discussion: several Orange County cities are considering or have placed TOT increases on the ballot ahead of the 2028 Los Angeles Olympics to capture visitor spending. Councilmembers said the primary target for TOT increases is visitors and overnight stays rather than local households.
Councilmember Monzo and others asked staff to use a community survey (FN3 research, results due mid-July) to inform rate selection and to present ballot language at a special meeting if desired. The council motion to direct staff to prepare ballot items and language passed unanimously (5–0).
What’s next: staff will draft measure language and a cost/revenue analysis and return to council at a special meeting before August 7 for final direction on placing a TOT increase on the ballot for voter consideration.
