San Jose puts hotel tax measure on June ballot

Facing yet another major budget shortfall, San Jose leaders have greenlit a proposal to hike taxes on hotel stays as a means of boosting revenue for city services.

The City Council voted unanimously Tuesday in favor of placing a measure to increase the city’s hotel tax, also known as a transient occupancy tax, on the June 2 primary election ballot. The proposal would raise the tax, levied on hotel guests, from 10% to 12% — a level that still falls below most other major cities. City officials estimate the hike would raise an additional $10 million in tax revenue each year.