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Supervisors greenlight development of a 2% TOT ballot measure, pause transfer‑tax decision
Summary
After polls showed majority support for a 2% unincorporated‑area transient occupancy tax (TOT) but insufficient support for a dedicated transfer tax, the board approved moving forward with TOT measure development and a small consultant budget while giving the property transfer tax one week for partners to clarify support.
Monterey County supervisors on June 9 directed county staff to develop ballot language and public‑engagement materials for a proposed 2% increase to the transient occupancy tax (TOT) in unincorporated areas, citing consultant polling showing broad majority support among likely local voters.
Sarah Labatt of EMC Research told the board that initial support for a 2% TOT increase in the unincorporated areas was about 59% and rose to 64% after additional information; that majority level exceeds the 50% threshold that a general TOT increase requires for passage. "Initial support for this TOT increase measure in the unincorporated areas of the county is at 59%," Labatt said during the presentation.
By contrast, the consultants found a dedicated property transfer tax on single‑family sales above $10 million was more divisive. "The dedicated property transfer tax faces a more difficult path," Tommy Clifford of Clifford Moss told supervisors, noting polling that peaked near 58% with positive framing but remained below the two‑thirds threshold needed for a special‑tax dedication.
Board members weighed political risks of placing two revenue measures on the same ballot and the potential for organized opposition to damage both measures. Several industry groups urged caution: the Monterey County Hospitality Association recommended capping any TOT increase at 1.5% and asked for destination‑marketing language; the Monterey County Association of Realtors urged a high threshold for transfer taxes to avoid long‑term negative impacts on the tax base.
The board voted unanimously to proceed with development of the TOT measure and to appropriate $30,000 to continue consultant services on pre‑ballot feasibility and public engagement; staff will return July 7 with measure language and legal review. The board also agreed to leave the transfer‑tax item on the agenda next week so partners can clarify support, but signaled concern that the special‑tax threshold makes passage unlikely in 2026.
Provenance: Presentation and polling results (SEG 1729–1910); public testimony and board deliberations and motion to proceed with TOT (SEG 1940–2876).
