Frequently Asked Questions

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A Tourism Improvement District (TID) is a dedicated area where local businesses and consumers pay an assessment (tax) for the purpose of conferring a "special benefit" upon the real property or a specific benefit upon the businesses in a business district. 

 The Hollywood Partnership is a non-profit organization that manages the public realm within the Hollywood Entertainment District (HED), which is a Property Based Business Improvement District (PBID). The organization is funded by property owner assessments. The Hollywood Partnership is working to establish a Tourism Improvement District to increase revenue beyond existing BID assessments. 

Learn  more at: https://hollywoodpartnership.com/about/scene-change

 Unlike traditional taxes, TID funds are legally restricted to the improvement and marketing efforts outlined in the district plan that benefit the paying businesses.  Proposition 26 requires that assessment funds be expended on, “a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege"

 Penalties and Interest - Any assessed business which fails to remit any assessment imposed within the time required will likely pay a percentage penalty of the amount of the unpaid assessment in addition to the amount of assessment owed.  In addition to the penalties imposed, any assessed business may also be required to pay interest.  

Pursuant to Section 36623(b) of the Code, a Majority Protest exists if written protests are received from owners of businesses located in the District which will pay fifty percent (50%) or more of the

assessments proposed to be levied.

The tabulation of the valid written protests received does not amount to a majority protest, as defined by Section 36623(b) of the Code. Therefore, the Ordinance establishing the District may be adopted by the City Council.

Pursuant to Section 36623(b) of the California Streets and Highways Code, a Majority Protest exists if the weighted assessment ballots submitted in opposition to a proposed Property and Business Improvement District (PBID) assessment exceed the ballots submitted in favor. If a majority protest is verified, the agency cannot impose, increase, or extend the assessment. 

Key aspects of this protest process include:

• Weighted Voting: Ballots are weighted by the financial obligation of the affected property.
• Tabulation: An impartial person designated by the agency tabulates the ballots.
• Finality: If a majority protest is found, the district cannot be established. 

The Protest is based on the requirements of California Proposition 218, which mandates a public hearing to consider all protests. 

https://clerk.lacity.gov/business-improvement-districts/bids-general-information/bids-faq