Motel and hotel guests will pay a higher city tax beginning in April under an ordinance introduced by the City Council this week.
The council voted to increase the transient occupancy tax to 8% from 6% to bring it in line with rates in other South Bay cities and to meet city costs for regulating hotels and motels. A survey of neighboring cities by the Business License Department showed that the average tax is 7.95%. Hermosa Beach had the lowest tax among 11 South Bay cities, and Los Angeles, with a 10% tax, had the highest, according to the survey.
William Grove, director of building and safety, said the increase should raise revenue by $12,000 annually.