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Hayward council delays decision on proposal to raise hotel tax to as much as 14% and sends it back to committee
Summary
Council declined to adopt staff’s recommended change to the transient occupancy tax (TOT) rate at the May 6 meeting and voted unanimously to send the item back to the Budget & Finance Committee for further study of phased approaches, comparisons and excise-tax impacts.
The Hayward City Council voted unanimously on May 6 to table a staff recommendation and refer discussion of the city’s transient occupancy tax (TOT) proposal back to the Budget & Finance Committee.
Interim Finance Director Sharif Edmond presented background and staff analysis supporting an increase in the city’s TOT rate from the current 8.5% to as much as 14% effective July 1, 2025. Edmond said voters in November 2020 approved a measure (referred to at the meeting as Measure N) authorizing the city to increase TOT up to 14%. Edmond noted the city currently also collects a 2% excise tax; therefore a full 14% TOT plus the excise tax would appear to a hotel customer as a 16% tax on the room…
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