Proposed Ballot Measure to Amend
Transient Occupancy Tax
Chapter 6.68
Item 11-A
July 28, 2026 (Special Meeting)
Item 11-A
July 28, 2026 (Special Meeting)
WHAT IS TRANSIENT
OCCUPANCY TAX
(TOT)?
• A tax on rental of lodging
(hotels, motels, homeshares) for stays under 30
days
• 15% on hotel and motels stays
• 17% on home-sharing
• Collected and remitted
monthly to the City by lodging
operators
Item 11-A
July 28, 2026 (Special Meeting)
Item 11-A
July 28, 2026 (Special Meeting)
WHY UPDATE THE TOT
ORDINANCE?
• TOT collections are currently only collected
for stays of up to 30 days
• With major events coming to the region – the
2028 Olympics & Paralympic Games – we
have had an increase in inquiries regarding
long-term hotel bookings that would extend
beyond 30 days.
• Accordingly, we have worked with our hotel
partners to develop TOT regulatory updates
to take into account transient stays during
Major Event Periods.
Item 11-A
July 28, 2026 (Special Meeting)
Item 11-A
July 28, 2026 (Special Meeting)
• Maintain existing tax rates (15% hotels, 17% home-sharing) • Allow City Council to define Major Event Periods under certain circumstances
• Requires paying TOT on corporate-paid stays over 30 days during these periods
• Permit TOT rate adjustments (from 0% to 15%) for such stays during these periods
• Require 31-day consecutive stay by a natural person for waiver of TOT payments
• Empower administrative regulations for exemptions
TOT AMENDMENTS
Item 11-A
July 28, 2026 (Special Meeting)
Item 11-A
July 28, 2026 (Special Meeting)
RECOMMENDED ACTIONS
• Adopt a finding of Categorical Exemption pursuant to Section 15061(b)(3) (common sense exemption) of the CEQA Guidelines;
• Adopt a resolution placing a measure on the November 2026 election that would amend the City Transient Occupancy Tax to:
1. Keep existing hotel tax rates unchanged;
2. Authorize the City Council to establish defined Major Event Periods when the tax will apply to lodging paid for or obtained by corporations and other legal entities for stays over 30 days;
3. Authorize the City Council to reduce the tax rate for hotels and motels for such stays during Major Event Periods;
4. Clarify that TOT refunds require a natural person to occupy the room for thirty-one consecutive day;
5. Authorize related administrative regulations; and
• Direct the City Attorney to prepare an impartial analysis of the measure.
Item 11-A
July 28, 2026 (Special Meeting)
Item 11-A
July 28, 2026 (Special Meeting)
BALLOT QUESTION
Item 11-A
July 28, 2026 (Special Meeting)
Item 11-A
July 28, 2026 (Special Meeting)