The Los Angeles City Council adopted an ordinance establishing the Los Angeles Tourism Marketing District, a new Business Improvement District to levy assessments on lodging businesses with 50 or more rooms citywide. Under the ordinance, lodging businesses will be assessed 2% of their gross short-term room rental revenue to fund targeted tourism marketing, sales initiatives, administrative operations and city administration fees from July 1, 2025, through December 31, 2034. The assessment rate may be increased up to 3% or decreased no lower than 2%, with any annual adjustment capped at a 0.5% change based on the Owners’ Association board’s recommendation. Exemptions include stays of more than 30 consecutive days, federal or state government guests on official business, airline crews, programs such as the Emergency Food and Shelter National Board, and persons charged rents of $2 per day or less. The district encompasses all existing and future lodging businesses with 50 or more rooms within the City of Los Angeles. Assessment statements and remittances are due monthly by the 25th, with delinquent payments subject to escalating penalties ranging from 5% to 20% and interest based on federal short-term rates plus three percentage points. The City Clerk will collect and remit the funds, audit financial records and may pass the assessment through to transients with separate disclosure as the “LATMD assessment.” An Owners’ Association, under contract with the City, will administer the district and engage an independent certified public accountant for annual financial reviews. Total assessments are estimated at $25.1 million for the first year and $366.2 million over the 9½-year lifespan. The district will not issue bonds, and City-administered baseline marketing services remain in place while LATMD funds supplement those efforts. There are 181 lodging businesses subject to assessment across the district. A yearly 30-day petition period will allow lodging owners to seek district disestablishment through a majority protest. No part of the assessments may be used for services outside the district’s scope as defined in the Management District Plan. The ordinance was approved by the Mayor on April 18, 2025, and becomes effective May 8, 2025.