Board directs staff to draft November ballot measures to update energy/extraction business tax and raise county transient‑occupancy tax

On June 9 the Solano County Board of Supervisors directed staff to prepare proposed ballot measures for the November 2026 general election to (A) modernize the county business license tax related to commercial energy production and resource extraction, and (B) increase the county transient occupancy tax (TOT) in unincorporated areas.

Business license tax: Resource Management staff reviewed the county’s 1994 wind‑turbine business license tax (0.0031 cents per kWh) and noted it lacks a CPI escalator. Staff presented options to adjust the historic rate, add an automatic inflation escalator, and expand the taxed base to include front‑of‑meter battery storage (capacity fee), commercial solar, and natural‑gas extraction (suggested 25¢ per 1,000 cubic feet). Staff estimated combined new revenue from adjusted wind tax and extraction fees in the low hundreds of thousands of dollars annually, subject to generation and commodity variability. Staff also reported that four SMUD‑operated projects are not taxed because of a court ruling (SMUD v. Solano County) that exempted SMUD operations from the county business license tax; staff said legislative change would be the path if the board sought to target those projects.

During debate, supervisors asked whether the county could set a higher rate than CPI, whether property owners leasing land to exempt entities could be taxed differently, and whether a legislative remedy was feasible to address the SMUD exemption. Supervisors also asked staff to include data centers and potential water‑use or wastewater impacts in further analysis; the board amended staff direction to add data centers and returned with unanimous direction to proceed (vote 4–0).

Transient occupancy tax (TOT): The Treasurer–Tax Collector reviewed the county’s current 5% TOT (applicable only in unincorporated areas) and compared neighboring jurisdictions, where rates range up to 14% (e.g., Vallejo and San Francisco). Staff recommended a countywide ballot measure (unincorporated revenues deposited to the general fund) to raise the TOT from 5% to 12% to align regionally; staff estimated the increase could yield roughly $55k–$58k annually in current collections but projected growth if unincorporated lodging develops. The board directed staff to return June 23 with a resolution and supporting code amendments (vote 4–0).

Process notes: Staff told the board that placing measures on the November ballot requires action no later than early August (about 88 days before the election) and that costs to place a measure are roughly $140,000. A general tax requires a majority (50%+1) to pass; a tax dedicated to a specific project or program would require two‑thirds approval.

Outcome: The board directed staff to prepare draft ballot materials for both proposals and to return June 23 with resolutions and required code amendments for further board action.