Santa Cruz County Approves Tax Hike Ballot Measures: Reports

SANTA CRUZ, CA — The Santa Cruz County Board of Supervisors voted Tuesday to include two items on the June ballot which could increase taxes on hotels and vacation rentals, and change the way the money earned from the plastic cup surcharge is spent.

If approved, the new taxes could raise up to $2.4 million annually for the county coffers.

The first proposal would raise the Transient Occupancy Tax from 11% to 12% for hotels, and 14% for vacation rentals. The proposed increases would be used to fund homeless services programs, storm response, wildfire prevention, street repair, public health services, and more.

The TOT was last raised in 2012, when more than 75% of voters approved increasing it from 9.5 to 11%.

The second proposal would turn the 25-cent fee on single-use disposable cups, which was approved in 2019 and went into effect on July 1, into a tax to be split evenly between Santa Cruz County and businesses. Currently, the surcharge only goes to businesses.

The revenue would be used to fund a number of environmental initiatives, including water quality and marine life management.