Fresno County presents transient-occupancy tax proposal as budget pressures mount

Paul, Fresno County’s county administrative officer, opened a public information session with a broad overview of county services and rising fiscal pressures, and said leaders are considering a transient occupancy tax for unincorporated areas to help cover growing costs.

"We are the top agriculture producing county in the nation," Paul said, describing Fresno County’s size, responsibilities and the scale of county operations. He outlined public safety duties (jail operations, court security and patrols for unincorporated areas), health and human services, roads and water infrastructure, election administration and agricultural protection. Paul noted the county’s total budget is roughly $5.3 billion, but that only a limited portion—about $408 million—remains discretionary for ongoing operations.

Paige Benavides, Fresno County budget director, walked through the fiscal picture for the adopted FY 2025–26 budget and described revenue limits. She said the general fund for the year is $2.6 billion and that growth in property and sales tax revenues has slowed. "We continue to see costs rising and outpacing our revenue growth," she said.

As a potential revenue option, Benavides described a transient occupancy tax, or TOT, which is charged on short-term lodging stays of 30 days or fewer and is typically paid by visitors. She said Fresno County is among a small number of California counties without a TOT in unincorporated areas and that cities such as Fresno and Clovis levy a 12% TOT. She estimated a county TOT matching city rates could generate about $4.5 million annually for county use.

Benavides explained the legal and procedural constraints: a county board of supervisors would need a supermajority to place a TOT on the ballot and then a majority of county voters would have to approve it. She also emphasized that TOT revenues remain local by law and cannot be redirected by the state.

Officials placed the TOT proposal in context with other fiscal challenges, including federal policy changes identified as HR 1 (2025) that county staff say shift costs to local government. Paul said those changes could increase indigent care costs by an estimated $40 million to $240 million per year if an estimated 11,000 to 30,000 residents lose eligibility for other coverage. He also cited department-level impacts: a roughly $50 million behavioral health revenue loss and about $7.5 million in additional county administrative costs for social services.

In a moderated Q&A, staff clarified that a TOT would apply only to short-term lodging and not to people living in a hotel as a primary residence. They also confirmed that Fresno County’s board has previously advocated to both federal and state officials about funding shifts and that staff expect to present polling and community feedback to supervisors before any final decision.

The county concluded the session inviting additional questions via email (FresnoCountyPIO@FresnoCountyCA.gov) and said next steps would include collecting community input and sharing polling results with the board.