San Benito County voters in November will decide whether to approve a transient occupancy tax increase to 12 percent from the current 8 percent to fund items such as tourism-friendly projects and infrastructure improvements. If approved by a simple majority, the tax is expected to bring in up to $128,400 annually, a nearly $43,000 increase over the roughly $85,000 in TOT tax collected in fiscal year 2011-2012.
The current 8 percent tax, levied in unincorporated areas of the county, was adopted in 1986. A TOT is charged in California to guests occupying a room or rooms or other living space in a hotel, inn, tourist home or house, motel or other lodging when the stay is 30 days or fewer. The funds are directed to the county's general fund and can be used in a variety of ways. The TOT is not a tax on business operators.
The Board of Supervisors also considered leaving the transient occupancy tax rate at 8 percent or raising it to 9, 10, 11 or 12 percent. During the past five years, San Benito County TOT revenue from the past five years has ranged from approximately $81,000 to $95,000.