San Diego is one step closer to increasing a tax on hotel rooms to fund an expansion of the downtown convention center.
The City Council Rules Committee voted Wednesday to approve a ballot measure to increase the city’s transient occupancy tax (TOT). After a unanimous vote, the measure will now go to the full council for review.
Mayor Kevin Faulconer is proposing a hotel room tax hike of 1 cent on the dollar citywide, and up to 3 cents downtown.
Supporters say that could generate $15 million in revenue.
Faulconer will use the TOT hike to pay for the convention center expansion as well as road repairs and homelessness programs.
Some hoteliers are worried higher taxes might steer prospective guests and conventions to other cities. There are some hoteliers who say they are also interested in discussing the idea.
District 3 Councilmember Chris Ward said the proposal will need more scrutiny and public input before moving forward.
Ward represents residents of Downtown, Little Italy, Bankers Hill, Mission Hills, Middletown, Hillcrest, University Heights, North Park, Normal Heights, Old Town, South Park, and Golden Hill.