A hotel tax in San Diego has been ruled legal by a superior court judge, setting the stage for a larger, longer legal battle to be waged in appeals courts. At issue is a tax on hotel rooms that will be used to pay for an expansion of the San Diego Convention Center.
The $520 million project hinges its funding on a hotel room tax of 1 to 3 percent. It’s the manner that the tax was approved that has some people questioning its legality. The City created a citywide community facilities district, and the district then polled hoteliers for approval of the special property tax.
But opponents of the plan say that tax increases must go before the entire electorate, not just the property owners.
Superior Court Judge Ronald Prager, however, ruled that the tax’s approval met all the requirements of charter cities. Opponents have promised to appeal.
Read the full story at the U-T San Diego.