Council updates tax code to align with court ruling exempting government travelers from hotel tax

The Los Angeles City Council voted unanimously to amend local law so hotels do not collect transient-occupancy tax from federal, state and local government employees traveling on official business, aligning the municipal code with a court decision and prior administrative practice.

City Clerk staff explained the change resulted from a court case that held such travelers are not subject to the occupancy tax; the administration has already advised local hotels to stop collecting the tax in those circumstances. Council members asked staff how the exemption would be documented, whether city travelers would receive a notification letter to present at hotels, and how audits would be handled; the clerk said hotels must document government-employee exemptions and periodic audits occur.

The council adopted the amendment on a unanimous roll-call vote. Members asked staff to ensure implementation details and traveler notification procedures were distributed to departments that send employees on official business.