San Diego, California – Starting May 1, visitors booking a hotel room or short-term stay in San Diego will face higher bills, as a long-contested tax hike finally goes into effect . The increase, part of the city’s Transient Occupancy Tax (TOT), was approved by voters in 2020 as Measure C and applies to all stays of less than 30 days — including hotels, motels, RV parks, bed and breakfasts, and short-term rentals.
Previously set at 10.5%, the TOT will now vary based on a property’s distance from the San Diego Convention Center. Properties closest to the center will be taxed at the highest rate of 13.75%, while those slightly farther will see 12.75% and 11.75%. The changes are part of a tiered system designed to generate more revenue from tourism, especially in high-traffic areas.
The increase comes as San Diego grapples with a $258 million budget shortfall for the upcoming fiscal year. City officials estimate the new tax rates will generate $82 million in fiscal year 2026 and over $1 billion in additional revenue in the first decade…