Voters in the city of Scotts Valley will decide in November’s general election whether to raise the hotel tax, formally known as a Transient Occupancy Tax, or TOT.
The question will appear on residents’ ballots as Measure G. It would raise the current hotel tax from 11% to 13%.
The measure was placed on the ballot by the City Council and is supported by Scotts Valley Mayor Donna Lind, Vice Mayor Steve Clark and retired Police Chief Stephen Walpole Jr., who signed the ballot argument in favor of the increase.
They argued that Sacramento takes too much of the city’s property tax revenue and that raising the TOT, which primarily hits visitors, would be a way to increase the city’s budget without impacting residents.
“Think about it: visitors drive our roads, enjoy our parks, and rely on our police and fire departments too,” the measure’s supporters wrote in their public appeal to voters that will appear on voters’ ballots.
Measure G would generate an estimated $300,000 a year to fund general city services. It requires a simple majority to pass.
The TOT is charged nightly to guests of hotels or motels within the city who stay for fewer than 30 consecutive days. Scotts Valley does not differentiate between commercial lodging, such as hotels, and private rentals, such as app-based short-term or personal listings.
Hotels and motels in the unincorporated areas of Santa Cruz County charge a hotel tax rate of 12% and a rate of 14% for private vacation rentals.
The city of Santa Cruz charges the same rates.