DATE: December 16, 2025
TO: Mayor and City Council
FROM: Finance Director
SUBJECT
Title
Adopt a Resolution Adjusting the City’s Transient Occupancy Tax (TOT) Rate from 12% to 14% Effective February 1, 2026, and Finding that the Action is Exempt from CEQA Review
End
RECOMMENDATION
Recommendation
That the City Council adopts a resolution (Attachment II) adjusting the City of Hayward’s (City) Transient Occupancy Tax rate from 12% to 14%, effective February 1, 2026.
End
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 in the November 2020 election authorized Council to adjust the Transient Occupancy Tax (TOT) rate from 8.5% to 14%. In June 2025, City Council adopted a resolution adjusting the City’s Transient Occupancy Tax rate from 8.5% to 12%, effective August 1, 2025.
Since June, the City’s financial outlook has worsened. Staff is recommending that the City Council adopt the attached resolution adjusting the TOT rate to the full voter approved amount of 14%, which would take effect February 1, 2026, ahead of the 2026 Superbowl. Staff estimates this will generate approximately $230,000 of additional revenue this fiscal year and $550,000 annually moving forward.
To help Hayward hotel businesses benefit from upcoming major regional events, staff is pursuing ways to promote activities to draw additional visitors to Hayward, specifically around the 2026 Superbowl and FIFA World Cup.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
Attachment III Resolution 25-109