The Hawthorne City Council voted on June 23, 2026, to place a measure on the November 3, 2026, general municipal election ballot. The measure is a proposed increase to the City’s Transient Occupancy Tax (TOT), also known as a local hotel tax. If approved by a simple majority of Hawthorne voters, this measure would increase the City’s existing TOT rate from 12% to 17%. The measure is projected to generate $1.2 to $3.1 million in locally controlled revenue annually.
A Transient Occupancy Tax is a hotel tax levied on room rents paid by guests staying 30 days or less in hotels, motels and short-term rentals. This tax is paid by overnight visitors to Hawthorne and is not a tax on local residents or property owners.
Hawthorne’s current 12% TOT rate is lower than several nearby jurisdictions, including Inglewood (15.5%), Manhattan Beach (14%), Culver City (14%) and Hermosa Beach (14%). A TOT adjustment to 17% may bring Hawthorne’s tax closer to regional benchmarks without compromising its competitive positioning in the market. With upcoming global events in the region, such as the Super Bowl and the LA28 Olympic Games, hotel occupancy and visitor activity are expected to increase.
If approved, all revenue generated by the measure would go directly into the City’s General Fund. This fund serves as Hawthorne’s primary account for day-to-day operations and essential community services. The locally controlled funding may help the City maintain essential services, such as police and fire response, street and sidewalk repairs, the upkeep of community parks and funding neighborhood cleanliness programs, such as bulky-item pick-ups.
“Our responsibility is to be transparent about Hawthorne’s financial outlook and the services our residents rely on every day,” said City Manager Vontray Norris. “This measure gives voters the opportunity to make an informed decision on how the City could fund services.”
The City of Hawthorne has demonstrated a strong track record of fiscal responsibility, consistently receiving an award for its Annual Comprehensive Financial Report (ACFR). To manage the budget effectively, Hawthorne has implemented cost-saving measures, including transitioning to a 4/10 operating schedule to reduce utility costs, strategically leaving vacant positions unfilled and monitoring police overtime.
Despite these proactive steps, an independent fiscal study shows that under the current 12% TOT rate, Hawthorne’s operational costs will outpace its incoming revenues, pushing the City into a structural budget deficit beginning in FY 2035-36. This projected deficit is expected to grow to $1.7 million annually by FY 2040-41. If approved by voters, the proposed $1.2 to $3.1 million in annual TOT revenue is projected to help offset this deficit.
To learn more about the proposed measure, visit CityofHawthorne.org/TOT.