Measure J corrects a loophole in the Transient Occupancy Tax code that ensures that all visitors staying in an Anaheim hotel pay the same tax rate. This correction could bring $3 million more dollars in annual revenue to our city without forcing Anaheim residents to pay more taxes.
Currently, our city’s hotels’ Transient Occupancy Tax revenue represents 27% of Anaheim’s General Fund. That is money that we Anaheim residents don’t have to pay. Without the Transient Occupancy Tax (also known as the TOT), each Anaheim household would pay about $1044 a year more in taxes and fees for the services they get right now. For more info, please see this staff report dated 11/1/2022 (Staff Report35886.pdf (anaheim.net)
We pay less than neighboring cities for our electricity and water because of the TOT. Many cities around us charge an additional sales tax to their residents on top of the County’s 7.75%. Our hotels’ TOT revenue deems such a tax unnecessary for our residents.