L.A. Approves Hotel Tax Hike for 2028 Olympics

City Council votes to increase hotel tax by 2% until end of Games, then 1% permanently

Published on Feb. 10, 2026

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The Los Angeles City Council has approved a ballot measure that would temporarily raise the city's hotel tax by 2% until the end of the 2028 Olympics, and then make a 1% increase permanent starting in 2029. The move is aimed at boosting city tax revenue during the expected tourism surge for the Olympics.

Why it matters

Los Angeles is facing budget challenges and sees the 2028 Olympics as an opportunity to generate additional tax revenue from the influx of visitors. However, the hotel industry has expressed concerns that the tax hike could make the city less competitive compared to nearby areas.

The details

The ballot measure approved by the City Council would increase the city's 14% transient occupancy (hotel) tax by 2% temporarily until the end of the 2028 Olympics. After that, the tax would drop to a permanent 1% increase starting in 2029. The temporary 2% increase is projected to generate $44 million per year, while the permanent 1% increase would bring in half that amount. The additional revenue would be used for general city services like emergency services, parks, and infrastructure.

  • The City Council approved the ballot measure on February 10, 2026.
  • The temporary 2% hotel tax increase would be in effect until the end of the 2028 Olympics.
  • The permanent 1% hotel tax increase would begin in 2029.

The players

Tim McOsker

A Los Angeles City Councilmember who supported the temporary 2% hotel tax increase, calling it "jet fuel" for the city's visitor-serving community during the Olympics.

Matt Szabo

The City Administrative Officer, who provided revenue projections for the proposed hotel tax increases.

Nella McOsker

The president and chief executive of the Central City Association, a downtown L.A. advocacy group, who argued the hotel industry was already facing challenges and that increasing taxes could send tourists to nearby cities.

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What they’re saying

“Two [percent] is a pretty significant jump, but it's a jump that's justified by the Olympics.”

— Tim McOsker, Los Angeles City Councilmember (Los Angeles Times)

“At a time when you're seeing these declines in demand and losing on tax revenue year over year to the magnitude of $20 million, it just seems like a wrong time to impose more burdens on that shrinking base.”

— Nella McOsker, President and Chief Executive, Central City Association (Los Angeles Times)

What’s next

The hotel tax and illegal cannabis tax measures will be on the ballot for Los Angeles voters on June 2, 2026, when they will also choose a mayor, city attorney, city controller, and fill several City Council and school board seats.

The takeaway

Los Angeles is seeking to capitalize on the expected tourism surge for the 2028 Olympics by temporarily increasing the hotel tax, but the move faces pushback from the hotel industry which argues the tax hike could make the city less competitive. The additional revenue would be used for general city services, though some council members have questioned whether the projected tax increase is realistic.