Arcadia : Hotel Tax May Be Increased
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The city is considering increasing its tax on hotel room bills to help make up a projected budget shortfall, and hoteliers are not happy about it.
“My chief concern is this is going to cost us room business,” said Carol Morrison, general manager of Marriott’s Residence Inn.
City Financial Director Jim Dale said he will recommend that the City Council vote this month to increase the 8% tax by at least two percentage points.
The tax would be implemented in July as part of a package to make up a projected $1.6-million revenue shortfall for the 1993-94 budget year, Dale told about 30 hotel managers and other business owners at a meeting this week.
City officials say a 10% tax would bring the city in line with its neighbors. The tax would raise $140,000.
Hoteliers say the tax would hurt the city because fewer visitors would shop and eat in Arcadia.
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