by Garth Meyer
To adjust T.O.T. or not to?
Redondo Beach seeks to raise its Transit and Occupancy (hotel) Tax by two percent, possibly three in the longer term, after the city council voted Nov. 18 to potentially put the question to voters.
The current rate of 12% compares to 14% in Manhattan and Hermosa Beach, and 11% in Torrance. Redondo last changed its rate in 2005.
Any adjustment would need to be approved by a ballot measure. The city council also has the leeway to set exemptions and an effective date.
City Councilman Zein Obagi, Jr., suggested the council raise it to 14% for now, while authorizing a future council to take it to 15% – so they would not have to spend the money to hold another ballot measure to do so.
Councilman Chadwick Castle concurred that he thought there “is room for us to increase.”
Councilman Scott Behrendt said “we don’t want to scare away” a potential new hotel at the South Bay Galleria site, noting Torrance’s lower T.O.T. rate.
“Is that going to drag a hotel literally across the street?” Behrendt said.
He suggested that the ordinance should state that any new hotel is exempt for its first three years. Obagi, Jr., then made a motion for city staff to draft a ballot measure of up to 15%, authorizing the council to set the rate. Councilmember Paige Kaluderovic seconded it and the motion passed 5-0.
Eugene Solomon, city treasurer, thanked the council in public comment.
“We’re not doing this for the next month, the next year, but the next, as it turns out, 20 years,” he said.
Transit and Occupancy Tax is a major tax source for the city, bringing in $6-9 million annually (net) for the past five years. Earlier in 2025, Solomon spoke out publicly to tell the council to “stop delaying” revenue-producing programs. An increase to 14% from 12% would translate to between $2-$5 per-night for a hotel stay.
Redondo Beach voters approved its last T.O.T. increase 20 years ago — from 10% to 12% – by a 54% margin.
In California last year, 23 of 28 Transit and Occupancy Tax increase measures passed. The Redondo council will need to decide on or before March 3 to put something on the June 2, 2026 statewide primary ballot.
