The Anaheim City Council voted 3-1 April 22 to allow some four-star hotels to charge and remit less than the established room taxes to the city. The measure allows luxury-level hotels to apply for special status with the city on an individual basis. Those hotels would collect and remit room taxes to the city as if guests were paying $130 per night, no matter how much more the hotel actually charged. The arrangement would last up to 15 years.
The measure applies to hotels built in the Platinum Triangle or Anaheim Resort, which includes the GardenWalk.
Hotel workers' unions opposed the idea, while the convention bureau supported it, saying it would stimulate the construction of luxury hotels in the area.
The City Council also voted to create a special tax district for the Platinum Triangle, to allow a property tax increase to raise funds for infrastructure improvements. Property owners in the commercial area will vote on the proposal in July. (Source: Orange County Register, April 22.)
Cal-Taxletter April 25, 2008
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