LA MIRADA — Residents in November will be asked to approve a pair of tax increases to offset the loss of federal revenue sharing money and a drop in sales tax revenue.
The City Council agreed to place the two tax proposals--increases in the bed tax and the annual business license fee--on the Nov. 3 general election ballot. Under state law, voters must approve the tax increases.
The city is seeking to raise the annual bed tax charged motel and hotel owners from 6% to 7%, which would generate an additional $50,000 a year for the city, said Tom Robinson, the city's community resources manager. The city receives about $300,000 in bed tax money from La Mirada's only hotel, the 292-room Gateway Plaza Holiday Inn on Firestone Boulevard.
On the same ballot, residents must decide whether to double the annual business license fee from $26 to $54. Last August, the council voted to increase the fee, but City Manager Gary Sloan said the action may require voter approval because of the passage in November of Prop. 62.