Los Angeles voters are about to weigh in on who pays what when visitors book a room in the city. Measure TC, on the June 2 ballot, would require online travel companies to collect and remit the city’s transient occupancy tax on the full amount guests pay, including service fees and platform markups. The City Administrative Officer estimates that closing this gap could add roughly $5 million a year to the General Fund, and supporters say it is a needed tune-up ahead of marquee events like the 2028 Olympics and a companion proposal, Measure TT, which would raise the city’s hotel tax rate.
What’s on the ballot
According to the City Clerk Voter Information Pamphlet, Measure TC, formally titled “Applying Transient Occupancy Tax To Online Travel Companies,” would amend the Los Angeles Municipal Code so that the definition of rent includes facilitation and service fees, unrefunded deposits and other markups. Online travel agencies and similar intermediaries would have to collect transient occupancy tax on that total amount. The pamphlet notes that the city’s current transient occupancy tax rate is 14% and that Measure TC is a general tax, with proceeds flowing into the city’s General Fund.
How it got here
As reported by LAist, the City Council in 2023 directed staff to study how online booking platforms affect transient occupancy tax collections. On February 10, the council voted to place Measure TC on the June 2 ballot. City officials have characterized the proposal as a technical update to a tax code written before third-party booking sites became a dominant way to reserve hotel rooms.
Backers and the price tag
The “Argument in Favor” in the voter pamphlet is signed by Councilmembers Tim McOsker, Eunisses Hernandez and Bob Blumenfield, along with City Administrative Officer Matt Szabo and Chief City Tourism Officer Doane Liu. They argue that “This measure does not create a new tax. It closes loopholes and modernizes outdated rules.” In a financial analysis included in the same pamphlet, the City Administrative Officer estimates Measure TC would generate about $5 million annually for general city services. City Clerk Voter Information Pamphlet
How it would work in practice
Online travel companies usually negotiate discounted or wholesale room rates with hotels, then turn around and sell those rooms to customers at a higher retail price. Under current practice, some platforms remit transient occupancy tax only on the lower wholesale amount. Measure TC would make the platforms responsible for collecting the tax on the full price the guest pays. The approach mirrors a model Anaheim voters approved in 2022, when that city revised its transient occupancy tax code to cover similar markups. Anaheim ballot materials
What voters should know
Measure TC is a general tax that would take effect if it receives a simple majority. Supporters emphasize that the cost is borne primarily by visitors, not most Angelenos. No formal argument against Measure TC was submitted for the official voter pamphlet, according to LAist. If voters approve both Measure TC and Measure TT, the measures are written so that both sets of changes can go into effect together.
Bottom line
On June 2, Angelenos will decide whether online booking platforms should play by the same hotel tax rules that brick-and-mortar hotels already follow. If Measure TC passes, city officials say the move would close a lingering revenue gap and provide a modest but steady stream of funding for services such as 911 response, firefighting and street repairs.
