The question of whether a hotel tax should be increased to help fund infrastructure improvements at the Long Beach Convention Center and also support citywide arts programs will now head to voters after a unanimous approval by the City Council Tuesday night.
The item will appear on the March 3 ballot, when millions of Californians will head to the polls to help decide which candidates will be on the November presidential ticket. The measure and will require over 50% of votes to win.
If approved, the city’s transient occupancy tax would be increased from 12% to 13% with the bump projected to create approximately $2.8 million in additional revenue. The tax, which is only paid by hotel or Airbnb guests when they book a room in the city, would amount to about $2 more per night according to city estimates.
The tax has been characterized by both city leaders and members of the arts community as a transformational opportunity to invest in the arts.
It could also fund an estimated $50 million in needed repairs at the convention center and Long Beach Arena, which host numerous large conventions annually. Over the weekend, they hosted the California Democrats endorsing convention which included forum discussions with eight presidential candidates.
The city made a $10 million investment into the convention center in 2013 which allowed it to host a larger variety of functions, including more intimate ones. In 2017, the convention center reported it brought in 1.3 million people and generated an estimated economic impact of $300 million for local stores, restaurants and hotels.