The City Council unanimously voted this week to increase the hotel and motel occupancy tax to 8 1/2% from 7 1/2% effective Jan. 1.
The 1% increase will raise an additional $125,000 a year for the city, said Finance Director Merle Lundberg. Manhattan Beach has nearly 815 rooms in nine hotels and motels.
Money from the recently opened Radisson Plaza hotel will go into the capital improvements fund, and money from the others will go into the general fund, he said.
The tax was last raised in March, 1980, when it was increased from 5 1/2%.