From the Daily Pilot:
The city could raise $2 million a year if voters approve Measure L, a proposed increase in the transient occupancy tax (TOT) applied to overnight hotel stays. The citywide initiative aims to raise the 6 percent fee to 8 percent, which would still keep the city below the Orange County average. With a tumbling economy, a $9.5-million budget gap, layoffs and cuts in services, the City Council looked for ways to generate revenue and placed Measure L on the ballot.... Jan Brueckner, professor of economics at UC Irvine, said many people don't check the "TOT" before booking hotel reservations so a spike in fees may not dissuade tourism. "It certainly doesn't make sense for Costa Mesa to leave money on the table by charging a low tax when everybody else is charging a higher tax, and when visitors don't pay attention to the tax when deciding where to stay," he said.

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