Santa Clara raises hotel tax, eyes other ways to increase revenue to tackle budget deficit

SANTA CLARA IS brainstorming strategies to improve the city’s economic future while grappling with a budget crisis.

The Santa Clara City Council unanimously voted last week to raise the transient occupancy tax from 11.5 percent to 12.5 percent, up to a maximum of 13.5 percent within the next two years, as a way to tackle the city’s deficit. The tax collects revenue from people staying in hotels and temporary rentals such as AirBnBs. The change is effective January 2024.