Santa Monica to Vote on Corporate Hotel Tax Changes

Measure TT proposes ending long-term tax refunds for corporate hotel bookings in Santa Monica.

Updated on Oct. 19, 2026 in Business Travel

Bold vector editorial illustration featuring a geometric hotel facade and a single brass tax token, representing local hotel tax policy changes. — Santa Monica residents will vote on Measure TT in November 2026, which aims to end transient occupancy tax refunds for corporate hotel bookings. AI Illustration. Upload story photo >

Live Poll

Should Santa Monica end hotel tax refunds for long-term corporate room bookings to increase city revenue?

On November 3, 2026, Santa Monica residents will vote on Measure TT, which seeks to eliminate transient occupancy tax refunds for long-term corporate hotel bookings. The proposal ensures that corporations booking blocks of rooms for over 30 days pay the same 15% hotel tax rate as other visitors.

Why it matters

The measure aims to standardize tax collection for corporate entities while providing the city council with the authority to adjust tax rates to maintain local competitiveness. This strategy seeks to mitigate potential revenue loss while keeping Santa Monica hotels attractive against regional rivals.

Santa Monica currently applies a 15% tax to hotels and 17% to home-shares. Under the new proposal, a stay must last at least 31 days to be eligible for any tax refund, while the city council gains power to lower rates during specific periods.

The players

Santa Monica City Council

The local governing body empowered by the measure to manage hotel tax rates and designate Major Event Periods.

The details

Measure TT applies exclusively to rooms booked by corporations or legal entities and does not alter tax requirements for individual travelers. The city council will have the power to declare Major Event Periods, such as the 2028 Olympic and Paralympic Games, during which these tax refunds can be suspended.

November 3, 2026: Date of the election for Measure TT.
2028: Potential Major Event Period for Olympic and Paralympic Games.

Travel Outlook

This proposal positions Santa Monica to align its fiscal policy closer to regional competitors like Beverly Hills and Marina del Rey. By adjusting its transient occupancy tax, the city seeks to navigate the balance between public revenue needs and the competitive demands of the hospitality market.

Corporate travel managers booking extended stays in Santa Monica should prepare for potential changes in tax liabilities if the measure passes. While individual travelers are unaffected, companies planning long-term room blocks should monitor future council declarations regarding tax exemptions.

The takeaway

Measure TT reflects a shift toward stricter tax parity for corporate hotel bookings in major event cities. Businesses should evaluate their long-term stay strategies to account for the potential elimination of historic tax refunds.