Pleasanton Advances Hotel Tax Increase Ballot Question

PLEASANTON, CA — The Pleasanton City Council voted to advance a potential ballot measure to raise the hotel tax, which could generate up to $2.8 million annually. The city currently has a transit occupancy tax of eight percent, which has been unchanged since 1983 and is one of the lowest in Alameda County. Staff recommend increasing the tax to 10% in July 2027 and 12% in July 2028. The full 12% is expected to generate $2.8 million annually, staff estimates.

The city faces a structural budget deficit, which it tried to address with a ballot measure to increase the city sales tax from 10.25% to 10.75%, a move estimated to generate roughly $10 million over 10 years. The move was rejected by Pleasanton voters 54-46 percent.

Still, a city staff report notes that measures to increase hotel taxes have an 82% passage rate statewide, according to CaliforniaCityFinance’s November 2024 Election Reports result. They are largely approved because the taxes are paid by visitors rather than residents.

Staff reached out to hotel operators in November and December, who reportedly did not express any opposition to a rate increase, and said they would not campaign against it. Visit Tri-Valley, the regional tourism marketing operation, also reportedly expressed interest in additional funding, and asked that some of the new TOT revenue go toward a future regional event venue.

During Tuesday’s meeting, the council unanimously directed staff to proceed with developing language for a ballot measure to increase the hotel tax. The council is expected to review proposed ballot language in June.

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SEE ALSO:

• Pleasanton To Consider Sales Tax Increase Ballot Measure
• Pleasanton City Council Hosting Meeting On $8M In Proposed Cuts