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Lemoore council asks staff to study possible hotel-tax increase after comparing neighboring cities
Summary
City staff told the council the transient-occupancy tax is 8% (unchanged since 1988); surrounding cities generally collect 10–12%. Council asked staff to prepare a rate-impact analysis and stakeholder outreach to evaluate a possible increase.
City staff briefed the Lemoore City Council on Jan. 6 about the city's transient occupancy tax (TOT) and sought direction on whether to study a rate increase. Staff reported the city’s current TOT rate is 8%, unchanged since its adoption in 1988, while neighboring jurisdictions typically levy 10%–12%. Staff said Hanford is considering raising its rate to 12% this year.
The staff presentation laid out how TOT revenue is used in the city budget, including public safety, infrastructure, tourism promotions and general government operations. Council members asked whether a higher rate deters hotels; staff and council discussion noted that developers and hoteliers often consider other factors (location, nightly rates) when siting hotels and that local comparisons matter for competitiveness.
Council members expressed a range of perspectives but generally supported directing staff to prepare a rate-impact analysis and to conduct stakeholder outreach and public consultation before any ordinance is introduced. No rate change was voted on at the Jan. 6 meeting; the council asked staff to return with an analysis and recommended next steps if council wishes to pursue an increase.
