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Yreka council approves placing 2% hotel‑tax increase on November ballot
Summary
The council voted unanimously to place a measure on the November ballot to raise the transient occupancy tax from 10% to 12%, a change estimated to add about $245,000 in annual city revenue and align Yreka with neighboring jurisdictions.
The Yreka City Council voted unanimously Tuesday to place a measure on the November general election ballot that would raise the city's transient occupancy tax (TOT) from 10% to 12%.
“As you may tell I am not Mr. Elsnabb. I am filling in for him today,” Juliana, the assistant city manager, told the council while presenting the proposal and its timeline. Juliana said the change would align Yreka’s rate with nearby localities and that the projected increase from 10% to 12% would be “an estimated increase annual city revenues by approximately $245,000.”
The resolution approved by the council (Resolution 2026‑22) directs the city attorney to prepare an impartial analysis of the measure and authorizes two council members to file an argument in favor of placing the measure before voters. Council Member Middleton moved to approve the resolution; Council Member Baker seconded. The city clerk recorded a unanimous roll call in favor from Council Members McCoy, Middleton, Davis and Baker.
Juliana and City Attorney Julia noted the tax applies to commercial short‑term lodging rented for 30 days or less and is paid by the consumer on hotel or short‑term rental invoices. Staff said collection is handled by a third‑party contractor (HDL), which remits the receipts to the city, and that the ballot measure would be treated as a general tax requiring a simple majority (50% + 1) for approval.
Councilors asked clarifying questions about who pays the tax and the mechanics of collection; Juliana confirmed it is charged to the end consumer at checkout and that HDL remits revenues to the city, typically at least quarterly.
If voters approve the measure in November, the brief staff presentation indicated the city would use the additional revenues as general fund dollars; the council did not specify a different earmarking in the motion passed Tuesday.
The council approved the resolution on the council's motion and the measure will be transmitted to the county clerk for placement on the ballot, subject to the normal election timeline.
