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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.
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.
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.
Revenue will support convention center expansion, homelessness programs, and street repairs.
The tax, increased in May 2025, applies to short-term stays and ranges from 11.75% to 13.75%.
While construction cannot begin until after 2026 due to a settlement, the city can now pursue financing.
San Diego Mayor Todd Gloria welcomed the ruling as a victory for economic development.
Un tribunal de California confirmó el aumento de impuestos del hotel de San Diego, permitiendo $1.04 mil millones en fondos para la mejora del centro de convenciones, programas para personas sin hogar y reparaciones de calles.