ORDINANCE INCREASING TRANSIENT OCCUPANCY TAX
(TOT) FROM 10% TO 14% AND SUBMITTING A BALLOT
MEASURE TO THE ALAMEDA VOTERS CONCERNING THIS
INCREASE
July 5, 2022
Presented by Michael Roush, Special Counsel
TRANSIENT OCCUPANCY TAX
Imposed on guests staying at hotels, motels, short term rentals Collected by hotel operators
Current rate is 10% (September 1990)
Last four years, around $ 2 million
Deposited into General Fund for essential City services Increase to TOT percentage (10% to 14%) needs voter approval Election where City Councilmembers are elected
Parity with neighboring jurisdictions
If voters approve, estimated TOT increase--$500,000
Would help maintain structurally balanced budget
BALLOT QUESTION
Shall an ordinance be adopted increasing the City of Alameda transient occupancy tax from 10% to 14%, paid by hotel/ motel/ short-term rental guests, generating approximately $700,000 to $910,000 annually until ended by voters, for general government use such as maintaining 9-1-1 emergency response times, supporting fire/ paramedic/ police services, repairing potholes/ deteriorating streets and maintaining clean/ safe parks/ beaches?
Question cannot exceed 75 words and must remain neutral.
BALLOT ARGUMENTS
If Measure placed on ballot, Council may draft argument by:
o Whole body at open meeting
o Committee approach
o Not submit
OUTREACH
Informational mailers to residents
Web and social media content
No advocacy
RECOMMENDATION
Adopt the ordinance to increase the TOT from 10% to 14% Adopt the resolution placing the ordinance on the November ballot Determine if Council will prepare arguments/rebuttals