If I'm living in a building and it becomes intolerable because of noisy transient visitors on a regular basis, a tax that goes to the city does me no good whatsoever.
Edit to add:
And by regulating local externalities at the local building level rather than the city level, you are more likely to have better regulations in regards to residents and owners wishes.
It's sad to get to this point but nobody was going to do anything and I was no way willing to deal with that situation. One tourist even pissed in the elevator.
The situation was just not tolerable.
One star - Neighbors will beat you with a baseball bat if you have a late night party.