General Election 2026

6.68.010 Definitions.
The following words and phrases, when used in this ordinance, shall, for the purpose of this Chapter, have the following respective meanings except where the context clearly indicates a different meaning:
a) Transient.
1) Any natural person who Any person who, for any period of not more than thirty days either at that person's expense or at the expense of another, obtains lodging or the use of any lodging space in any hotel as hereinafter defined, for which lodging or use of lodging space a charge is made.; or

2) Any corporation, company, copartnership, partnership, joint venture, limited liability company, or other legal entity that pays or is obligated to pay any portion of the room rental associated with its own right of occupancy or the occupancy of another, exercises a right of occupancy, or is entitled to occupancy by reason of concession, permit, right of access, license or other agreement.

b) Person. Any natural person, individual, corporation, company, association, firm, copartnership, partnership, joint venture, limited liability company, estate, trust, business trust, receiver, trustee, syndicate, other legal entity, or any group of individuals acting as a unit.

c) Hotel. Any public or private hotel, inn, hostelry, tourist home or house, motel, rooming house, bed and breakfast, home-share (as defined in Santa Monica Municipal Code Section 6.20.010), or other lodging place within the City of Santa Monica offering lodging, wherein the owner and operator thereof, for compensation, furnishes lodging to any transient.

d) Room rental. Any charge required by any such hotel for lodging and/or lodging space furnished to any such transient, including, but not limited to, furniture, fixtures, appliances, linens, towels, non-coin-operated safes, and maid service. Room rental shall not include any amount upon which a sales or use tax is imposed with respect to the sale of food products.

e) Director of Finance. The Director of Finance of the City of Santa Monica. 

f) Permanent resident. Any natural person who, as of a given date, has occupied or has had the right to occupy a room or rooms in a particular hotel, as herein defined, for the thirty consecutive days next preceding such date.

SECTION 2. Section 6.68.040 of the Santa Monica Municipal Code is amended to read as follows (new text is shown by underlining):

6.68.040 Collection; Returns for Room Rentals of Thirty-One or More Consecutive Days.
(a) Collection. On and after the effective date of this ordinance, every person receiving any payment for room rental with respect to which a tax is levied under this ordinance shall collect the amount of tax hereby imposed from the transient on whom the same is levied or from the person paying for such room rental, at the time payment for such room rental be made.

(b) Returns for Room Rentals of Thirty-One or More Consecutive Days.

(1) Eligible Returns. Except as provided in subsection (2), below, and Section 6.68.105, Exemptions, where Where the tax has been collected for room rental for thirty days or less and: (i) the room rental occupant subsequently completes extends beyond thirty-one consecutive days of occupancy; and (ii) the same natural person has occupied the room for 31 days or more, the person whose duty it is to collect said tax may return such tax to the occupant or person obligated to pay such tax.

(2) Ineligible Returns. When the tax was imposed during a Major Event Period on a non-natural person described in 6.68.010(a)(2), the person whose duty it is to collect said tax shall not be required to return such tax to the transient obligated to pay such tax.

(c) If said person whose duty it is to collect said tax has paid such tax over to the City, he or she may, within one year from the date of payment to the Director of Finance, and provided he or she has returned such tax as authorized above to the occupant or person obligated to pay such tax, either take credit for the tax so paid on any subsequent return filed by him or her or file a claim for refund of such tax. Such claim may be paid to such person by the Director of Finance. The taxes required to be collected hereunder shall be deemed to be held in trust by the person required to collect the same until remitted as hereinafter required.

SECTION 3. Section 6.68.030 of the Santa Monica Municipal Code is added to read as follows:

6.68.030 Major Event Period; Council Authority to Temporarily Adjust Tax Rate

(a) The City Council may, by resolution, establish a Major Event Period in connection with a major event or series of related events that the City Council determines is reasonably expected to materially increase tourism or demand for hotel accommodations in the City or surrounding region over an extended period of time, including, but not limited to, the 2028 Olympic and Paralympic Games. The resolution shall identify the underlying event or series of events and the beginning and ending dates of the Major Event Period. A Major Event Period may begin before and end after the underlying event or series of events.

(b) For a Major Event Period established pursuant to subsection (a), the City Council may, by resolution, temporarily adjust the transient occupancy tax rate imposed under Section 6.68.020 on transients described in Section 6.68.010(a)(2) for stays of thirty days or less, or for stays of thirty-one consecutive days or longer, to a rate between fifteen percent and zero percent. The resolution shall specify the adjusted rate, the effective beginning and ending dates of the rate adjustment, and any administrative requirements necessary to implement the reduction. The adjusted rate may apply only during all, or a portion of, the Major Event Period.

(c) A temporary rate adjustment adopted pursuant to this Section does not amend the tax rate otherwise imposed by this Chapter. Upon expiration of the temporary reduction, the otherwise applicable tax rate shall automatically resume without further action by the City Council.

SECTION 4. Section 6.68.105 of the Santa Monica Municipal Code is amended to read as follows: 

6.68.105 Additional Exemptions and Administrative Regulations.
(a) Notwithstanding any other provision of this Chapter, the Director of Finance, or designee, may establish and administer an exemption from the tax for room rental associated with occupancy by a natural person who has occupied or had the right to occupy a room or rooms in a particular hotel for at least thirty-one consecutive days, when any portion of the room rental is paid by a person other than a natural person and the occupancy is necessitated by:
(1) displacement from a residence caused by fire, natural disaster, or other casualty;
(2) extended medical treatment; or
(3) other comparable circumstances beyond the natural person’s control; or
(4) other grounds approved by the Director of Finance.
(b) The Director of Finance may adopt administrative regulations, rules, or require supporting documentation, to implement the provisions of this Chapter including, authorizing the return, refund, or credit of tax collected or remitted with respect to a qualifying occupancy. Any claim for refund or credit shall be subject to the one-year limitation established by Section 6.68.040.

CITY ATTORNEY’S IMPARTIAL ANALYSIS OF MEASURE TT

The City of Santa Monica imposes a Transient Occupancy Tax (“TOT”) on lodging charges. The current rates are 15% for hotels and motels and 17% for home-shares. TOT is a general tax; its revenue may be used for any municipal purpose.

Current law defines a “transient” to include an individual, corporation, and other organization obtaining lodging for 30 days or less. Lodging providers collect TOT on those rentals and may return it if the occupant later completes 31 consecutive days in the same room.

This measure would retain the existing tax rates and amend the definition of “transient.” A natural person would remain a “transient” only for stays of 30 days or less.

The measure provides that a corporation or other legal entity (“Corporate Entity”) is a “transient” subject to initial TOT collection when it pays or is obligated to pay any portion of a room rental, exercises a right of occupancy, or is entitled to occupancy under an agreement, regardless of booking length. For a Corporate Entity booking lasting more than 30 days, TOT may be returned if the same natural person occupies the same room for at least 31 consecutive days. By contrast, a 45-day Corporate Entity booking occupied by three different individuals for 15 days each would not qualify for return because no individual occupied the same room for at least 31 consecutive days.

The measure further authorizes the City Council, by resolution, to establish a Major Event Period for a major event or related events reasonably expected to materially increase tourism or hotel demand in the City or surrounding region over an extended period. The period could begin before and end after the event. During a Major Event Period, a hotel would not be required to return TOT imposed on a Corporate Entity, regardless of booking length. In addition, during all or part of the period, the Council could temporarily set the hotel and motel TOT rate for Corporate Entity bookings of any length at any rate from 0% through 15%. The 15% rate would automatically resume when the adjustment expires. The measure would not authorize reducing the 17% home-share rate.

The Finance Director could establish exemptions for lodging paid in whole or in part by a Corporate Entity when a natural person occupies or has the right to occupy it for at least 31 consecutive days. Such exemptions may apply when the occupancy is necessitated by displacement from a residence caused by fire, natural disaster, or other casualty; extended medical treatment; comparable circumstances beyond the occupant’s control; or other approved grounds. The Finance Director also could adopt administrative rules and documentation requirements for returns, refunds, and credits. Claims would remain subject to a one-year deadline.

The measure was placed on the ballot by the Santa Monica City Council. A “yes” vote favors adoption; a “no” vote opposes adoption. A majority of votes cast on the measure is required for passage.

No argument against was filed.