In November, Pleasanton voters will decide whether to approve an increase to the City’s hotel tax. If approved, the measure would help address the City’s structural operating budget deficit and support City services and programs.
At its July 7 meeting, the Pleasanton City Council unanimously voted to place the tax measure on the November 3, 2026, ballot. Voters will be asked whether to raise the City’s hotel tax, formally known as the Transient Occupancy Tax (TOT), in two phases – from 8 percent to 10 percent on July 1, 2027, and to 12 percent on July 1, 2028.
Based on current hotel occupancy rates, the measure is projected to generate about $2.8 million annually once fully implemented. The tax is paid primarily by overnight visitors staying in Pleasanton hotels and motels rather than by residents.
“We’ve spent the past year steering Pleasanton towards a more fiscally sustainable future,” Mayor Jack Balch said. “From countless conversations across our community, including close engagement with our hospitality industry, I am confident that we are presenting voters with a reasonable choice for November.”
The City Council first began exploring a potential hotel tax increase in August 2025 as part of broader discussions about the City’s long-term financial sustainability. The City evaluated several revenue options, met with local hotel operators and other stakeholders, and reviewed hotel tax rates throughout Alameda County.
The City’s current TOT rate of 8 percent has remained unchanged since 1983 and is among the lowest in Alameda County. If approved, the measure would bring Pleasanton’s rate more in line with neighboring communities, which have TOT rates between 10 and 14 percent.
The City conducted a statistically valid FlashVote community survey earlier this year. Results showed that 67 percent of respondents supported a hotel tax increase, 13 percent were neutral, and 20 percent opposed the proposal. Participants also identified public safety, parks and recreation, local businesses, streets and sidewalks, and overall community appearance as top priorities for City services.
“Throughout this process, the City took a deliberate, measured approach,” Interim City Manager Joe Calabrigo said. “The proposal grew out of months of financial analysis, conversations with local hotel operators, and community feedback.”
Hotel tax revenue is a general tax, meaning funds would be deposited into the City’s General Fund and could be used for general services such as public safety, infrastructure maintenance, parks, and recreation.
Following the City Council’s approval Tuesday night, the City Attorney will prepare an impartial analysis of the measure. The City Council also formed an ad hoc committee and appointed Councilmembers Eicher and Nibert to draft the City Council’s primary argument in support of the measure on behalf of the City Council.
The measure will be on the ballot for Pleasanton voters on November 3, 2026, and requires majority voter approval (50% plus one vote) to pass.
For more information about the proposed Transient Occupancy Tax, visit the City’s webpage on the proposed hotel tax measure. For regular updates, residents are urged to follow us on Facebook and Instagram at @CityofPleasantonCA.