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Carmel council discusses sales‑tax and transient‑occupancy tax measures; directs drafting and legal review
Summary
Council reviewed draft ordinances to (1) increase the transactions and use tax by 0.375 percentage points (to 1.875%) and remove the sunset; and (2) add 2% to the transient occupancy tax (raising it from 10% to 12%). The council directed staff to submit the sales-tax draft to the state for review and asked the city attorney to work with two council members to finalize ballot language and 300‑word arguments for both measures.
The Carmel-by-the-Sea City Council spent substantial time on May 4 discussing two potential revenue measures to help address the city’s infrastructure needs: a 0.375 percentage‑point increase to the transactions and use tax (TUT) and a 2% increase to the transient occupancy tax (TOT).
City attorney Brian reviewed the draft TUT ballot question and legal steps required to place a general tax on the November 3, 2026 ballot, and noted that a council resolution requires four…
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