Hotel and Motel Tax to Help Palmdale Tourism | New
PALMDALE – Hotels and motels in Palmdale are reportedly each paying a 2% fee to fund efforts to attract more visitors to the city as part of a district tourism improvement project.
The District was presented to City Council on Tuesday, the first step in creating the Self-Assessment District.
The proposal was created by owners and managers of hotels across the city. According to the staff report, this would create a private, nonprofit entity to lead the estimated $ 900,000 per year expenditure that the district would collect.
The funding would be used to help increase hotel stays through the promotion of travel and tourism. The district would seek to organize special events, which would also benefit the local community, to improve current infrastructure and tourist attractions.
The assessment would last five years, if approved, said Luis Garibay, acting director of community and economic development.
The valuation paid by all hotels and motels would be 2% of gross short-term room rental revenues; it would not include stays longer than 30 days or those under contract before November 1.
This is in addition to the 10% transitional occupancy tax levied by the city for its own purposes, Garibay said.
Unlike that tax, the 2% assessment would only be used by the district for its efforts to increase guest stays, he said.
The process of establishing the Tourism Improvement District was launched by city council on Tuesday and will include two more meetings with public hearings on the proposal. Authorities expect it to be established by November.
Board member Richard Loa expressed concern that small hotels and motels would be required to participate in the district, but were less likely to see the same benefits as larger hotels.
He said he wanted it to be expressly written in the district training materials that small hotels would be adequately represented and benefit from the program.
Director of Economic Development Luis Gonzales said all hotels in the city were included in the district’s proposal process.