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flag A California court upheld San Diego’s hotel tax increase, allowing $1.04 billion in funding for convention center upgrades, homelessness programs, and street repairs.

flag A California appeals court has upheld Measure C, a 2020 San Diego ballot initiative that raised the hotel tax to fund convention center modernization and related projects, ruling that a simple majority—rather than a two-thirds vote—is sufficient under state law. flag The decision, resolving a five-year legal dispute, allows the city to collect approximately $82 million in fiscal year 2026 and $1.04 billion over a decade. flag Revenue will support convention center expansion, homelessness programs, and street repairs. flag The tax, increased in May 2025, applies to short-term stays and ranges from 11.75% to 13.75%. flag While construction cannot begin until after 2026 due to a settlement, the city can now pursue financing. flag San Diego Mayor Todd Gloria welcomed the ruling as a victory for economic development.

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