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Hotel Tax (Transient Occupancy Tax) Measure

A proposed Pleasanton hotel tax measure to support City services and long-term financial stability

On July 7, 2026, the Pleasanton City Council unanimously voted to place a uniform Transient Occupancy Tax measure on the November 3, 2026, general municipal election ballot. The measure will allow voters to consider increasing the City’s hotel tax, formally known as the Transient Occupancy Tax (TOT), to help address the City’s structural operating budget deficit and support City services and programs.  

The hotel tax is paid only by overnight guests staying in short-term lodging, such as hotels and motels, for 30 days or less. The City’s current TOT rate of 8 percent has remained unchanged since 1983 and is among the lowest in Alameda County. If approved by voters, the measure would increase the City’s TOT rate from 8 percent to 10 percent effective July 1, 2027, and from 10 percent to 12 percent effective July 1, 2028. The measure would require a simple majority (50 percent plus one) of eligible Pleasanton voters to approve.

Based on current hotel occupancy rates, the measure is projected to generate about $1.4 million in the first year and $2.8 million annually once fully implemented. 

The City first began exploring a 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. 

Why This Is Being Explored

Pleasanton faces an ongoing structural budget deficit driven by rising costs for services and infrastructure. City Council directed staff to explore potential revenue options, including a hotel tax.

Because the hotel tax is paid primarily by visitors, it could help support City services while limiting direct impacts on residents.

Earlier this year, the City conducted a statistically valid FlashVote community survey. 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. 

How the Hotel Tax Works

When an overnight guest stays in a hotel or similar lodging for 30 days or less, the hotel tax is applied as a percentage of the room rate. The guest pays the tax as part of their bill, the lodging operator collects it, and the revenue is remitted to the City.

Hotel tax revenue is a general tax, meaning funds would be deposited into the City’s General Fund and could be used for services such as public safety, infrastructure maintenance, parks, and recreation.

How Pleasanton Compares

Pleasanton’s current hotel tax rate is among the lowest in Alameda County. Most neighboring cities have rates between 10% and 14%, and several have increased their rates in recent years.

Even at 12%, Pleasanton would remain generally in line with nearby cities.

A Phased Approach and Timeline

Potential Approach Under Consideration

Based on stakeholder feedback and regional comparisons, the measure proposes a phased increase to the hotel tax rate, up to 12% over two years:

  • Current rate: 8% 
  • Proposed Phase 1: 10% effective July 1, 2027 
  • Proposed Phase 2: 12% effective July 1, 2028 

At current hotel occupancy levels, a 12% rate could generate $2.8 million annually, although actual revenue would depend on market conditions. 

What Happens Next

The City Attorney is preparing 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. 

Once complete, the City will submit all required materials to the Alameda County Registrar of Voters for placement on the November 3, 2026, general municipal election ballot.

Additional Information

Learn More

Frequently Asked Questions

A hotel tax, also known as a Transient Occupancy Tax (TOT), is a tax paid by overnight guests staying in hotels and similar lodging for stays of 30 days or less. The tax is charged as a percentage of the room rate and collected by lodging operators on behalf of the City.

Yes. Pleasanton currently has an 8% hotel tax, which has been in place since 1983 and has not been adjusted since that time. 

The tax is paid by overnight visitors. Residents would only pay the tax if they choose to stay in a local hotel or motel.

The City of Pleasanton is facing an ongoing structural budget deficit driven by rising costs for services and infrastructure. In August 2025, City Council directed staff to explore potential revenue options and engage stakeholders. A hotel tax is one option being considered because it is commonly used by cities and is paid primarily by visitors rather than residents.

Pleasanton’s hotel tax rate is among the lowest in Alameda County. Most neighboring cities have rates between 10% and 14%, and several nearby jurisdictions have increased their rates in recent years. Cities currently at or above 12% include Alameda, Hayward, Newark, Oakland, San Leandro, Union City, Berkeley, and Emeryville.

Based on stakeholder feedback and regional comparisons, staff recommended that City Council consider a phased increase to a 12% hotel tax rate over two years:

  • Phase 1: Increase from 8% to 10% effective July 1, 2027
  • Phase 2: Increase from 10% to 12% effective July 1, 2028

Based on current hotel occupancy rates, the measure is projected to generate about $1.4 million in the first year and $2.8 million annually once fully implemented. 

Hotel tax is a general tax, meaning revenues would be deposited into the City’s General Fund and could be used for any lawful City purpose, including core services such as public safety, infrastructure maintenance, parks, and recreation.

City staff conducted listening sessions with local hotel operators and regional partners. Feedback included no opposition to a potential rate increase, comments ranging from neutral to supportive, confirmation that Pleasanton’s current rate is well below regional comparables, and a preference for phased implementation rather than a single large increase.

Yes, on July 7, 2026, the City Council adopted a resolution and an ordinance that included the ballot language and placed the proposed hotel tax measure on the November 3, 2026 general election ballot. 

Yes. Pleasanton voters will have the opportunity to vote on the measure in the November 3, 2026, general municipal election.