Overview
- City Council voted 13-2 to place a June 2 measure raising the transient-occupancy tax from 14% to 16% through 2028, then setting it at 15% starting in 2029.
- Finance officials project about $44 million in annual revenue during the pre-Olympics period and roughly $22 million a year afterward for general city services.
- A separate ballot measure would require online travel platforms to collect the tax on the full price paid by customers, an estimated $5 million yearly boost.
- Voters will also consider taxing unlicensed cannabis businesses after a 14-1 council vote, with initial revenue projected at $60 million to $80 million though collections may decline with enforcement.
- Hotel and business groups, joined by two dissenting councilmembers, warn higher costs could shift travelers to nearby cities, as San Jose advances a comparable 2% hotel-tax increase for its June ballot.