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November 2020 Ballot Measure E - Transient Occupancy Tax (TOT) Rates
Santa Clara will have a General Municipal Election on November 3, 2020, which is also the Presidential General Election. As part of the City’s fiscal planning, the City Council placed Measure E on the November 2020 ballot.
Measure E will appear on the ballot as follows:
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Transient Occupancy Tax Rates. To maintain and protect the level of essential city services including 9-1-1 emergency medical/disaster preparedness, police and fire protection, bicycle and pedestrian safety, roadways and storm drains, and other vital services including parks, recreation, libraries and senior services, shall a measure increasing the hotel tax rate up to 4%, generating up to approximately 7 million dollars annually, paid only by hotel/motel guests, until ended by voters, be adopted? |
If enacted, Measure E would allow an increase in Santa Clara’s hotel tax by up to 4% over time to support providing essential City services, paid only by guests staying in hotels. Santa Clara currently has the second lowest hotel tax rate in the County. Expected revenue figures upon which this Measure is based are derived from pre-pandemic data. If the measure is not passed by the voters, then the TOT rate would remain set at its current rate of 9.5%.
Following are some answers to frequently asked questions about Measure E:
Q: What is Measure E?
A: Measure E is a hotel tax paid only by hotel guests. Visitors pay this tax when they stay at a Santa Clara hotel or motel. This is not a tax on homeowners or property owners.
Q: Why was Measure E placed on the ballot?
A: Like other cities around the State and country, Santa Clara is working to address the economic challenges of the COVID-19 pandemic. Measure E was placed on the ballot and drafted to afford the City Council with flexibility to account for current economic challenges in the hospitality sector while also preserving the ability to benefit from potential increased revenue as the economy recovers.
Q: Does Measure E address emergency services?
A: If enacted, Measure E would provide an additional source of locally controlled funding that is available to support general City services including emergency services. The revenues may be used to help maintain disaster preparedness and quick 9-1-1 emergency response times. The Santa Clara Fire Department receives nearly 10,000 calls for services per year.
Q: What other local services would Measure E maintain?
A: If passed, Measure E will help protect and maintain general city services, such as:
- Rapid 9-1-1 emergency response times
- County/City coordination for community health emergencies like COVID-19
- Street maintenance and pothole repair
- Emergency disaster preparedness
- Local business and resident support through recovery
- Senior services, libraries, parks, and recreational programs
Q: What does Measure E cost?
A: Measure E (paid only by hotel/motel guests) would allow for increases in the City’s tax on hotel/motel visitors by up to 4%. Measure E is not a property tax. Measure E may generate up to approximately 7 million dollars annually, based upon pre-pandemic economic models, and dependent upon the number of hotel nights booked by guests in such establishments.
Q: Will Measure E funding be spent locally?
A: Yes. Measure E revenue cannot be taken by the State.
Q: When is the election?
A: Look for Measure E on your November 3, 2020 ballot. For more election information and to register to vote online, visit the Santa Clara County Registrar of Voters at sccgov.org.
Q: How can I find out more information about Measure E?
A: You can email any questions to Finance@SantaClaraCA.gov and a response will be posted on this page. Here are some additional resources about Measure E:
Resolution 20-8878 (Resolution Submitting the Ballot Measure to November 3, 2020 Special Election)
City Attorney's Impartial Analysis of Measure
Educational Information on Measure E
Watch this informational video on Measure E to find out more: