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Carmel-by-the-Sea council directs staff to pursue language for possible November 2026 TOT increase after heated public debate
Summary
After a staff presentation showing a 2‑point TOT increase (10%→12%) could yield about $1.8M, hoteliers warned of lost occupancy and reinvestment impacts; council voted 4–1 to ask staff to draft ballot language and return in April for review.
The City Council opened a detailed discussion about whether to pursue an increase in the City’s transient occupancy tax (TOT), a tax paid by short‑term lodging guests. Marissa (city staff) explained the legal and electoral options and presented revenue scenarios that estimated a 2 percentage‑point increase—from 10% to 12%—could generate approximately $1.8 million annually but emphasized actual receipts would depend on tourism conditions.
Marissa summarized the legal framework: a general tax (simple majority approval by voters) requires a four‑member council vote to place a measure on the ballot and must appear on an even‑year November ballot; a special tax (dedicated revenue for a specific purpose) requires two‑thirds voter approval and a three‑member council vote. “This is going to be a two‑part presentation,” Marissa said, explaining the council needed…
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