I have spent a lot of time in the recent debates trying to advocate for our city’s need to think strategically about business development. I think it makes sense to think strategically about how we can best develop the limited commercial properties in our city to be sure we include potential revenue as an additional generated by commercial impact.
I hope in communicating more details about my thought process (and about how some of the city’s revenue is generated) that you too would share this opinion and begin participating in this dialogue.
Sales Tax
The city of Hermosa Beach sees only 1% of the sales tax revenue from restaurants and bars in town, and this income is received as a reimbursement approximately every six months from the State of California.
Property Tax
The city of Hermosa Beach sees only 20.4-cents out of every dollar you pay in property taxes. That means, that for every thousand dollars you pay, the city gets $240 dollars.
Transit Occupancy Tax (TOT)
Also know as the ‘hotel tax’ the city collects a 10% tax every time someone stays at a hotel in Hermosa Beach. Even better, the city receives this payment from hotels operators directly and on a quarterly basis. The TOT is one of the most profitable businesses our city can attract and retain.
Business License Fees
All businesses in Hermosa Beach pay an annual Business License Fee. While the fees vary, it’s important to note that service businesses, such as salons and dry cleaners, do not generate revenue for the city of Hermosa Beach beyond the Businesses License Fee which is approximately $185.
