Transient Occupancy Tax – Measure W
Supporting City Services without Taxing Residents
Information on the November 2024 Transient Occupancy Tax Measure
The City of Ukiah is known for its strong quality of life and vibrant character where one can live, work, raise a family, and retire. The City strives to maintain safety, security, and a high quality of life for all who live, work, and visit here.
Reliable Source of Funding for Some City Services
One of the fiscal means to maintain this quality and character is the City of Ukiah’s Transient Occupancy Tax (TOT) also known as a “bed tax” or “hotel visitor tax” which is paid by hotel, motel, and short-term rental guests staying in Ukiah and provides a reliable source of funding for some City services, doing so without any tax burden on local residents. The City’s TOT was last increased in 2006 and has not been raised since; it has not kept pace with rising costs.
A Modest Increase in Local Revenue at No Cost to Ukiah Taxpayers
To help the City plan for the future, the Ukiah City Council unanimously voted to place a Transient Occupancy Tax measure on the November 5, 2024 ballot. If approved by Ukiah voters, this measure would generate roughly $420,000 per year, providing additional locally-controlled funding that would help the City better plan for long-term sustainability of key City functions, including:
- Supporting Public Safety
- Maintaining and Improving Parks and Open Spaces
- Visitor Attraction
- Downtown Beautification
- Supporting City Youth Programs
Required Fiscal Accountability Keeps All Funds Local
The City’s current TOT is subject to mandatory accountability requirements and the November 2024 measure would include the same provisions, including:
- All money raised by the measure could only be used to fund local services and infrastructure within Ukiah City limits
- A clear system of accountability would be required, including annual independent audits and public disclosure of spending
This revenue stream would remain in place unless rescinded by the voters, and cannot be taken by the State.
Frequently Asked Questions - Transient Occupancy Tax Ballot Measure
What is a Transient Occupancy Tax (TOT)?
A TOT is a local tax on hotel, motel, and short-term rental stays and is commonly known as a “hotel bed tax” or “hotel visitor tax.” The City of Ukiah’s current TOT provides a reliable source of funding for some City services and is only paid by visitors, not Ukiah residents, unless residents stay at a hotel, motel, or short-term rental in Ukiah.
How will the measure change the TOT rate?
If approved by voters, the measure will increase the TOT rate from the current level of 10% to a new level of 13%. This increase would create approximately $420,000 annually in new revenue for the City’s General Fund.
Who pays the TOT?
The guest staying at the hotel, motel or short-term rental pays the tax.
The tax must be charged to the guest and separately stated from the room charge. Each hotel or motel operator/short-term rental owner shall collect the tax and remit with a report each month to the City.
How would funds from a TOT increase be used?
If approved by city of Ukiah voters, this measure would increase the City’s revenue base and provide additional locally-controlled funding that would help the City better plan for long-term sustainability of key City functions, including:
- Supporting Public Safety
- Maintaining and Improving Parks and Open Spaces
- Visitor Attraction
- Downtown Beautification
- Supporting City Youth Programs
How much would a TOT increase cost a visitor?
The average daily rate for a hotel room in Ukiah is $150.00. Currently, the 10% TOT is $15.00. At the proposed 13% rate, the TOT would be $19.50, or an additional $4.50 above the current rate.
Do other California cities have a TOT?
Most cities and/or counties in the United States have a TOT. A TOT is an efficient way to raise revenue for local priorities while not increasing property or sales taxes on residents.
How will the measure funds be accounted for?
If approved by voters, every dollar raised by the measure is deposited in the City’s General Fund, which is subject to an annual public budgetary review and accountability standards. Under current State law, all TOT funds raised are spent locally and cannot be taken away by the State. The measure would remain in place unless rescinded by the voters.
Who is considered a “Transient” guest?
“Transient” is the term used to describe a person (usually a tourist or business visitor) who occupies a room in a hotel, motel or short-term rental for less than thirty (30) consecutive days.
When will voters decide on the measure?
The measure will be on the November 5, 2024, ballot. All registered voters in Ukiah will be able to vote on the measure.
