City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-00596 3/25/2025 Discussion Item 2.
Transient Occupancy Tax (TOT) Presentation [Oral Report] File ID: 2025-00596
Location: Citywide
Recommendation: Review and provide comment.
Contact: Megan Van Voorhis, Director, (916) 808-5979; Dustin Hollingsworth, Assistant Director, (916) 808-5538, [email protected]; Convention and Cultural Services Department
Presenter: Megan Van Voorhis, Director, (916) 808-5979, Convention and Cultural Services Department; Mike Testa, President and CEO, Visit Sacramento Attachments:
1-Description/Analysis
Description/Analysis
Issue Detail: The Uniform Transient Occupancy Tax (TOT) is a tax paid by guests staying 30 or fewer consecutive days at hotels, motels, inns, short term rentals, and similar establishments within the City. Currently the tax is 12% of rent charged by the operator and has two components. The first component, which accounts for 2% of the 12% tax, is a general tax that is placed directly into the City’s General Fund and can be used for any governmental purpose. The remaining 10% of the tax is a special tax which is deposited into the transient occupancy account and shall be used exclusively for:
1. Administration of the provisions of City Code 3.28;
2. Economic development projects to create local jobs;
3. Acquisition, construction, completion, operation, repair and maintenance of visitor-serving facilities that promote tourism, economic development, and other activities that bolster the local economy, such as convention halls and centers; theatre and arts venues; public off-street parking facilities and related site improvements; lands, easements, rights-of-way, and other works, property, or structures, necessary or convenient for these facilities;
4. Expense in connection with proposals or proceedings for acquisition of the facilities referred to in subsection 3 of this section;
File ID: 2025-00596 3/25/2025 Discussion Item 2.
5. Interest and principal payments on bonds issued to acquire any of the facilities referred to in subsection 3 of this section;
6. Lease payments for lease of any of the facilities referred to in subsection 3 of this section; and
7. Recurring annual payments to fund Visit Sacramento.
Existing TOT obligations include, but are not limited to, annual payments to Visit Sacramento operations, and Council-approved bond obligations for the Convention Center Complex Project (SAFE Credit Union Convention Center, SAFE Credit Union Performing Arts Center, and Memorial Auditorium).
Policy Considerations: The information presented in this report is to advise City Council of the status, forecasts, and obligations of the Uniform Transient Occupancy Tax Account.
Economic Impacts: None.
Environmental Considerations: This report is not a project pursuant to the California Environmental Quality Act (CEQA). This report is an informational item only. No action is being taken in connection with this report. As there is no potential for this oral report to result in a direct physical change in the environment or a reasonably foreseeable indirect physical change, this report does not qualify as a “project” under CEQA. (See CEQA Guidelines 15378(a)).
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: Not applicable.
Financial Considerations: Not applicable
Local Business Enterprise (LBE): Not applicable