Tourism Business Improvement District transition to 1994 law
Summary
The 2% lodging assessment was renewed after almost no protests, but Supervisors want changes — more accountability, better community benefit, and answers on overlaps with Visit SLO CAL — before converting to a 1994-model district this fall.
At a glance
- Total mentions
- 4
- Last 30 days
- 1
Discussed at 2 meetings in the last 60 days; most recently Nov 3, 2026.
Impact analysis
A 2% per-night assessment on lodging, with $14 million invested in 700 local projects over 15 years.
Hotels, vacation rentals, and tourism-dependent coastal businesses; local grant recipients.
Oceano Pier Avenue short-term rental owners, who say they're taxed without representation and lumped into the wrong marketing area; Supervisor Ortiz-Legg raised Avila concerns too.
Mentions & discussions (4)
Board of Supervisors - Nov 3, 2026
The Board was set to hear testimony on creating a tourism marketing district along the Highway 1 coastal corridor, funded by assessments on area businesses. How the money gets spent would be guided by a draft Highway 1 Tourism Alliance policy.
Board of Supervisors - Sep 29, 2026
The county launched proceedings to formally establish the H1TMD, which levies a 2% assessment on coastal lodging to fund tourism marketing and community amenities — including the Upwell turtle sculpture in Avila Beach.
Board of Supervisors - Jul 28, 2026
The county's lodging assessment district is moving from annual renewal under 1989 law to a five-year plan under 1994 law, run by the Highway 1 Tourism Alliance. Lodging owners strongly supported it; Supervisor Ortiz-Legg won a commitment that a board policy will require a set percentage of funds for local improvements like trash pickup and beautification.
Board of Supervisors - May 19, 2026
The 2% lodging assessment was renewed after almost no protests, but Supervisors want changes — more accountability, better community benefit, and answers on overlaps with Visit SLO CAL — before converting to a 1994-model district this fall.
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