Early unofficial election results in Scotts Valley show strong voter support for an increase in the city’s hotel tax, formally known as the transient occupancy tax, or TOT.
Measure G would raise the hotel tax from 11% a night to 13%.
The measure was leading in the first release of results from the Santa Cruz County Elections Department.
It would generate an estimated $300,000 a year for general city services and was supported by elected leaders as a way to shore up the city’s general fund without heavily impacting residents. They argued the tax would be mostly paid by visitors from outside the city.
The rate would bring it in line with other cities in the county and unincorporated areas of Santa Cruz County, which charge between 12% and 14%.
The tax is paid by anyone who stays fewer than 31 days in a hotel, motel or other temporary commercial lodging. Scotts Valley uses one rate for commercial hotels and private property short-term rentals.