Pleasanton council puts phased hotel-tax increase on November ballot

Pleasanton's City Council voted June 2 to place a transient-occupancy tax (hotel tax, or TOT) measure on the Nov. 3, 2026 ballot that would raise the city rate in two steps: from 8% to 10% on July 1, 2027, and to 12% on July 1, 2028, if approved by voters.

Assistant to the City Manager Aron Zavala framed the tax as a visitor-based revenue source to reduce pressure on household taxes and shore up declining long-term city revenues. "Visitors use city service while they're here. So the tax is a way for them to help pay for what they use rather than our residents," Zavala told council.

Staff estimated the first-step increase would generate about $1.44 million and the full 12% rate about $2.8 million annually at current occupancy levels. The city said a FlashVote survey of verified residents showed roughly 67% support for a TOT increase and indicated top priorities for new revenue: public safety, parks and recreation, and local streets.

Council debated whether to phase the increase over two years, as hotels urged, or move immediately to 12%. Some council members and public speakers urged the single-step approach to capture full revenue sooner. Local hoteliers and the Chamber of Commerce had signaled concerns about an immediate jump given post-COVID occupancy recovery; staff said the phased option reflected outreach and sought to preserve business neutrality.

Council first voted unanimously to place a TOT measure on the November ballot. In a subsequent roll-call decision on the structure, council adopted the two-step, phased approach (10% in 2027, 12% in 2028) by a 4-1 vote after further debate.

If the council-adopted ordinance is finalized in July, ballot language will go to the county by the early August deadline; the measure would be a general tax (simple majority required) and not a special tax tied to a single purpose.

The council directed staff to return with final resolution and ordinance language on July 7 and continue outreach to hospitality partners. If voters approve the measure, the city would begin collecting the increased TOT in the stated phased schedule.