Item 07 - Public Meeting Regarding Renewing the Santa Ana Tourism Marketing District

Home Browse Search

Public Meeting to Renew the Santa Ana Tourism Marketing District (SATMD) June 3, 2025 Page 4 5 0 7 5 MANAGEMENT DISTRICT PLAN The Management District Plan (Exhibit 1) includes the proposed boundary of the SATMD, a service plan and budget, and a proposed means of governance. The SATMD will include all lodging businesses with seventy (70) rooms or more, existing and in the future, available for public occupancy within the boundaries of the City. The renewed SATMD will have a ten (10) year life, beginning January 1, 2026, or as soon as possible thereafter, and ending ten (10) years from its start date. After ten (10) years, the SATMD may be renewed pursuant to the 94 Law if assessed business owners support continuing the SATMD programs. The annual assessment rate is two percent (2%) of gross short-term sleeping room rental revenue. Every two (2) years during the operation of the SATMD, the assessment rate may be increased by the TSA Board to a maximum rate of four percent (4%) of gross short-term sleeping room rental revenue. If the assessment rate is increased, it may subsequently be decreased but shall not be decreased below a minimum of two percent (2%) of gross short-term sleeping room rental revenue. The maximum increase or decrease in any two-year period shall be one-half of one percent (0.5%). Once per year beginning on the anniversary of SATMD establishment, there is a thirty (30) day period in which business owners paying fifty percent (50%) or more of the assessment may protest and begin proceedings to terminate the SATMD. Any increase must address specific needs, such as tourism recovery or expanding marketing efforts, and can later be reduced, though not below 2%. This flexible funding structure allows Santa Ana hoteliers to respond strategically to changing market conditions. Decisions on rate changes are guided by the Travel Santa Ana Board, considering factors like occupancy and economic impact. Regular monthly reporting ensures transparency, and the TMD hoteliers support the structured increase approach, which aligns with practices in about 43% of California Tourism Marketing Districts. Transient Occupancy Tax Rate in Comparison (highest to lowest) City TOT Additional Assessments Total Assessment Anaheim 15%2%17% Garden Grove 14.5%2.5%17% Long Beach 12%3%15% Buena Park 12%2%14% Laguna Beach 12%2%14% Huntington Beach 10%4%14% Newport Beach 10%3%13% Santa Ana 11%2% 13% Costa Mesa 8%3%11% The City of Santa Ana has been and will continue to be responsible for collecting the assessment on a monthly basis (including any delinquencies, overdue charges, and interest) from each assessed lodging business located in the boundaries of the SATMD. The City then disburses the assessment amounts, minus the two percent (2%)