Supporters, led by the San Diego Firefighters Association, want to increase the TOT from 10.5% to 13.5%. San Diego Mayor Dick Murphy, chair of the council's Rules Committee, directed the city manager to study the proposal.
The proposed tax hike has dumbfounded local tourism officials. Hotel occupancy rates have plunged and thousands of hotel workers have been laid off in recent weeks following the attacks.
On Wednesday, the Rules Committee listened to hoteliers' complaints and then decided unanimously to reject the increase. However, city staff was directed to look at more modest proposals and report back by November, in plenty of time to get a measure on the March ballot.
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