Hermosa Beach Plans Tax Increases

Saddled with hundreds of thousands of dollars worth of potential red ink, the Hermosa Beach City Council on Tuesday increased its hotel tax, slapped a new tax on commercial landlords, upped the parking fee at a city lot and toughened reporting procedures for sales taxes at its twice-yearly arts festival.

The new revenue is expected to put a $119,000 dent in an estimated $356,000 shortfall projected for the 1991-92 fiscal year budget. The remainder of the deficit is to be offset by scores of small budget cuts, ranging from cutbacks in office supplies to a revision in employee insurance. The 1991-92 budget totals $17.2 million.

Under the changes approved Tuesday, the transient occupancy tax will rise to 10% from 8%, adding a potential $50,000 to the city’s coffers; a tax will be imposed on commercial landlords, resulting in a revenue increase of about $55,000; all-day parking at the city lot on the corner of Beach Drive and 15th Street will cost $7 instead of $4, generating about $6,000, and artists selling goods at the biannual Fiesta de Las Artes will face more stringent reporting procedures, which are expected to net about $8,000 in taxes for the city.