Gilroy council puts transient‑occupancy tax increase on November ballot, approves initial 11% rate

The Gilroy City Council voted to call a consolidated general municipal election for Nov. 3, 2026 and to place a measure on the ballot that would raise the city’s transient‑occupancy tax (TOT). The council also concurred with an initial proposed TOT rate of 11 percent and approved a ballot question structured as a general tax with a not‑to‑exceed framework up to 13 percent.

City staff told council the HUD‑style revenue estimate for an 11 percent TOT is roughly $300,000 in current dollars; the maximum scenario approaching 13 percent would raise more. The city budgeted election costs in the adopted FY27 budget and staff said the cost to hold the consolidated election is covered within existing appropriations.

Council first adopted a resolution to call the election and request county consolidation. Council then voted to set the initial TOT rate at 11 percent and to place the measure on the ballot; the placement motion carried 6–1. The measure is drafted as a general tax requiring a simple majority for passage.

Next steps: staff will submit the required ballot language, set deadlines for arguments and rebuttals, and coordinate with the county registrar for materials and polling.