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Council approves placing a transient-occupancy tax increase on Nov. ballot to raise about $600,000 annually
Summary
Council voted to place a November ballot measure that would raise hotel TOT from 13% to 14% and short-term rental TOT from 13% to 16%, estimated to generate about $600,000 a year; staff will prepare ballot materials and supporting resolutions.
Staff presented a proposed locally controlled general tax measure that would increase Monterey Park's transient-occupancy tax and place the question before voters in November 2026. The draft ballot language explains the increase would be paid by lodging guests and read that the measure would raise hotel/motel tax from 13% to 14% and short-term rental tax from 13% to 16%, with an estimated revenue impact of "approximately $600,000 a year." The measure would deposit funds into the city's general fund for unrestricted local purposes, require audits and disclosures, and remain in effect until ended by voters.
Council members discussed community outreach meetings, comparisons with neighboring cities' TOT rates and a bifurcated rate for short-term rentals vs. hotels. Staff noted current revenue breakdowns showing the majority of TOT receipts come from hotels, leaving hotels to generate about $300,000 and short-term rentals about $90,000 for the added 1% baseline. The council voted unanimously to place the proposition on the ballot and adopted related procedural resolutions directing the city attorney to prepare an impartial analysis and setting argument rules.
