ATTACHMENT II
HAYWARD CITY COUNCIL
RESOLUTION NO. 25-____
Introduced by Council Member _________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HAYWARD ADJUSTING THE TRANSIENT OCCUPANCY TAX RATE FROM 8.5% TO 14.0% EFFECTIVE JULY 1 , 2025; FINDING THAT THE ACTION IS EXEMPT FROM
ENVIRONMENTAL REVIEW
WHEREAS, the Transient Occupancy Tax (TOT) is a general tax imposed on the privilege of occupancy in any hotel, and is a debt owed by the transient to the City, which is satisfied by payment to the operator of the hotel; and
WHEREAS, the TOT is implemented through Hayward Municipal Code Chapter 8, Article 4; and
WHEREAS, during the November 3, 2020 general election the voters of the City of Hayward approved Measure NN (Ordinance No. ME 20 -01), increasing Hayward’s TOT rate from 8.5% to an amount up to 14%; and
WHEREAS, the City Council directed staff to maintain the TOT rate at 8.5% to allow hoteliers time to recover from the impacts of the COVID 19 pandemic, and requested that an adjustment to the TOT rate be reviewed and considered when the economy recovered from the impacts of the pandemic; and
WHEREAS, on February 4, 2025 the City Council held a General Fund Budget Work Session to review potenti al strategies that could be implemented to assist in closing the projected structural deficit, and during the work session, the City Council expressed unanimous support for adjusting the TOT rate as a strategy to close the projected structural deficit; and
WHEREAS, California Constitution Article XIII C does n ot require voter approval where a general tax is imposed at a rate that does not exceed the maximum tax rate previously approved by the voters.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hayward that the Transient Occupancy Tax levied pursuant to Hayward Municipal Code Chapter 8, Article 4 is hereby imposed at the rate of 14.0%, effective July 1, 2025.
BE IT FURTHER RESOLVED, that the City Manager , or he r designee, is authorized to take any administrative actions necessary to implement the rate adjustment adopted herein.
BE IT FURTHER RESOLVED, that this action does not have the potential for creating a significant effect on the environment and is therefore exempt from further review under CEQA pursuant to State CEQA Guidelines Section 15060(c)(3) because it is not a project as defined by the CEQA Guidelines Section 1 5378. Adjustment of the Transient Occupancy Tax rate does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment.
IN COUNCIL, HAYWARD, CALIFORNIA, , 2025
ADOPTED BY THE FOLLOWING VOTE:
AYES: COUNCIL MEMBERS:
MAYOR:
NOES: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ATTEST: ______________________________________
City Clerk of the City of Hayward
APPROVED AS TO FORM:
_________________________________________
City Attorney of the City of Hayward