A new tax is on the horizon for those who enjoy Hollywood’s attractions, from concerts at the Hollywood Bowl to dining at local restaurants. While businesses will be responsible for collecting the tax, it will ultimately be paid by consumers.

New 'Scene Change' Assessment

The proposed tax, initially termed a Tourism Improvement District but now called “Scene Change,” aims to generate additional revenue for the Hollywood area. This comes on top of existing taxes and assessments already paid by businesses in Los Angeles, including a gross receipts tax and assessments from the Hollywood Entertainment District Property-Based Business Improvement District.

Current Funding Deemed Insufficient

According to The Hollywood Partnership, the current funding of over $8 million annually – primarily used for cleaning and safety services – is “insufficient.” They cite the need for daily pressure washing of the Walk of Fame due to high foot traffic and aging infrastructure. A November survey of Hollywood stakeholders identified homelessness, crime, cleanliness, and vacant buildings as key negative impacts.

Assessment Zones and Rates

The proposed assessment is divided into two zones, with varying rates based on business type. Zone A, encompassing Hollywood Boulevard between La Brea and Gower, and Vine Street between Sunset and Franklin, will see hotels charged 3% of gross receipts, food and beverage/entertainment businesses at 2.5%, and other businesses at 0.5%.

Zone B, including the Hollywood Bowl and extending down Highland, will assess hotels at 2.5% and food/beverage/entertainment businesses at 2.0%. Other businesses in Zone B will be exempt.

Who Ultimately Pays?

Despite businesses being responsible for collection, the costs will be passed on to consumers through increased prices for tickets, meals, parking, and other goods and services. This will impact both tourists and local residents who frequent Hollywood attractions.

Upcoming Town Hall Meeting

An informational town hall meeting is scheduled for Thursday, April 2, from 10 a.m. to noon at Ovation Hollywood, 6801 Hollywood Blvd., Suite 513. More information and an RSVP link can be found at StopTheHollywoodTID.com.