Gilroy Proposes Transient Occupancy Tax Increase for Local Services
What happened
The City Council of Gilroy is considering Measure B, a proposal to increase the city’s Transient Occupancy Tax (TOT) on the November 3 ballot. The measure would raise the current 9% hotel tax to an initial rate of 11%, with the City Council having the authority to adjust the rate up to a maximum of 13 percent. This tax is paid by visitors staying in short-term lodging, not by residents.
From gilroydispatch.com
Why it matters
The city estimates that at the maximum 13% rate, the TOT measure could generate approximately $700,000 annually, or about $300,000 at the initial 11% rate. These funds are designated for critical services, including police and fire response, street repair, and emergency preparedness.
From gilroydispatch.com
Who's involved
- city councilLegislative body governing the city's local services
- GilroyThe municipality where the tax measure is proposed
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- GilroySpeculative
The TOT increase might generate significant new revenue for critical local services.
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The entities involved
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city council
legislative body that governs a city, municipality or local government area
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Gilroy
city in Santa Clara County, California, United States