DATE: June 17, 2025
TO: Mayor and City Council
FROM: Interim Director of Finance
SUBJECT
Title
Adopt a Resolution Adjusting the City’s Transient Occupancy Tax Rate from 8.5% to 12.0% Effective August 1, 2025, and Finding that the Action is Exempt from CEQA Review
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RECOMMENDATION
Recommendation
That the City Council adopts a resolution (Attachment II) adjusting the City of Hayward’s (City) Transient Occupancy Tax rate from 8.5% to 12.0%, effective August 1, 2025; and to review raising TOT from 12% to 14% effective FY 2027-28 should the current 2% Excise Tax terminate December 31, 2027; and finds that the action is exempt from CEQA review.
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SUMMARY
This report provides a review of the City’s current Transient Occupancy Tax (TOT) rate, and consideration for increasing the TOT rate in accordance with Measure NN, a voter approved ballot measure, which authorized Council to adjust the TOT rate from 8.5 percent up to 14 percent. In November 2020, the City continued to balance the impacts related to the economic uncertainties around the pandemic. At that time, Council directed staff to keep the TOT rate at its current rate of 8.5 percent to allow hoteliers time to recover from the pandemic. Council requested that an adjustment to the TOT rate be reviewed and considered when the economy has recovered from the impacts of the pandemic.
The report provides an overview of the TOT rate, and consideration for adjusting the TOT rate from 8.5 percent to 12 percent in FY 2025-26 and to review raising TOT from 12% to 14% effective FY 2027-28 should the current 2% Excise Tax terminate December 31, 2027.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution