Council votes to place hotel tax increase on November ballot

The Yreka City Council voted unanimously on June 16 to place a measure on the November general election ballot asking voters to raise the city's transient occupancy tax (TOT), commonly known as the hotel tax, from 10% to 12%. Council Member Middleton moved to approve Resolution 2026-22; the motion passed on a roll call vote with all members voting "I."

Staff said the proposed ballot language will be transmitted to the county clerk as required and noted a non‑substantive typographical correction in the draft resolution. According to staff projections presented at the meeting, increasing the TOT to 12% is estimated to generate roughly $245,000 in additional annual city revenue, money that city staff said would go to the general fund unless directed otherwise.

An administrative staff member explained the tax applies to transient stays of 30 days or fewer and is charged to the consumer at checkout for hotels, motels and short‑term rentals. The city contracts with a vendor (HDL) to collect and remit TOT revenues. Staff also distinguished the TOT from a separate 2% Tourism Business Improvement District (TBID) assessment, which lodging properties in the county self‑impose for tourism marketing and from which the city does not receive direct TBID dollars.

Because the measure is proposed as a general tax, placement on the ballot requires a simple majority of voters (50% + 1) to pass, staff said. The council also directed the city attorney to prepare an impartial analysis of the measure and authorized Council Members Claire and McCoy to author and submit a ballot argument in favor of the measure.

The council took the action after a brief period of questions from members seeking clarification about who pays the tax and how it is collected. The city clerk recorded the unanimous vote. The measure will now move through the county clerk's election processing timeline.