The proposed increase in transient occupancy tax was killed following the possible impacts on small businesses and tourism in Carlsbad.
Proposed Transient Occupancy Tax Hike Killed Due to Possible Impacts on Small Businesses and Tourism Industry in Carlsbad
The proposed transient occupancy tax hike was immediately killed due to possible impacts on small businesses and the tourism industry in Carlsbad, wherein the proposed transient occupancy tax by 1% will reportedly have short-term and long-term effects on hotels and rentals.
According to a report published in The Coast News Group, the proposed increase in transient occupancy tax hike would supposedly add to the annual hotel tax revenues, especially after the pandemic; however, many hoteliers and small businesses opposed the transient occupancy tax increase due to its possible impacts.
Despite its benefits to annual hotel tax revenues, increasing the transient occupancy tax would only affect the tourism industry in Carlsbad as the transient occupancy tax hike would not encourage tourists to visit the city and settle on hotels and small businesses in various areas.
Carlsbad Will Pursue Other Measures Following Killing of Increasing Transient Occupancy Tax Proposal
Following the killing of the proposed increase of transient occupancy tax, Carlsbad thought of other measures to pursue to contribute to the economic growth amidst the inflation and high cost of living, The San Diego Union-Tribune reported.
Other measures include internal cost-cutting and removing the temporary prohibition in drive-through businesses as lawmakers claimed that increasing the transient occupancy tax would not benefit the city’s tourism industry.