New Hilton Taxes To City Would Equal Nearly Half Of Property Taxes
Raising concerns about the financial future of Beverly Hills, City staff has informed members of the City Council that the anticipated revenues from the proposed Beverly Hilton Revitalization Project would equal nearly half of the property taxes received by the City from all sources.
Under California state law, a city receives only 17 percent of local property taxes, while the City would receive 100 percent of hotel transient occupancy taxes. Compared to other sources of revenues, the Hilton will generate in additional taxes approximately the same amount as the City receives from sales taxes from all sources in the City.
City Manager Rod Wood told The Courier: “Remember, the plan includes substantial upgrades to existing Hilton rooms and their replacement with fewer but more expensive Waldorf Astoria rooms.”
Property taxes received by the City of Beverly Hills for the current fiscal year, which runs from July 1, 2008 to June 30, 2009, are expected to be approximately $32 million.
The Beverly Hilton project will generate $390.850 million in net revenues to the City in 30 years, and be $13.028 million each year . The amount will rise as inflation increases revenues.
Total city revenues from July 2007 to June 2008 as follows: hotel taxes $29.102 million, the City’s portion of sales taxes $27.379 million the City’s portion of real property taxes $37.301 million, business taxes $34.371 million.