Hotel Tax (Measure V)

MEASURE V – TRANSIENT OCCUPANCY TAX

On April 2, 2024, the City Council voted to place a measure on the November 5, 2024, ballot that, if approved by the voters, would increase the City’s Transient Occupancy Tax (TOT) or hotel tax for overnight visitors to hotels, motels, inns, and other places. The question that will appear on the ballot is:
Measure V - Transient Occupancy Tax (TOT) Measure 
“Shall a measure enacting a four percentage point (4%) increase to transient occupancy tax, increasing the total tax levied on hotel occupants from 8 to 12 percent, and reserving the increase for the general fund, generating approximately $300,000.00 annually for general City services such as public safety, park maintenance, recreation programs, street maintenance, solid waste, and community facilities maintenance until ended by voters, be adopted?”

Measure V Frequently Asked QuestionsWhat contributes to the City of Hollister’s high quality of life?
The City of Hollister is a thriving community with Central California independence and charm. We strive to maintain the high-quality of living for all residents that we are known for, and that has brought people here from around the world.  Our city is fortunate to have our own Police and Fire Departments, guaranteeing our police and firefighters are available when needed.

 How is the City developing a long-term solution to its funding needs?
The City of Hollister has been exploring options to maintain the quality of City services without raising taxes on residents. Recently, the Hollister City Council moved to place Measure V on the November 2024 ballot to increase the existing hotel tax (legally known as transient occupancy tax) by 4%.

If passed by local voters, Measure V could provide an estimated $300,000 annually to support general City services. Measure V would not raise taxes for Hollister residents—it applies only to visitors staying at overnight hotel rooms.

Why is Hollister considering increasing the transient occupancy tax (TOT)?
Keeping our City clean, safe, and well-maintained is our top priority. Our city is fortunate to have its own Police and Fire Departments, guaranteeing that public safety is available when needed. However, over the past few years, costs for community services have continued to increase while City revenue resources have not kept up with inflation.
At the same time, tourists frequently choose to visit Hollister to enjoy our parks, historic downtown, nearby vineyards, and to attend our many community events. As a consequence, these tourists increase traffic and demand for City services and resources, including parks, community facilities, sidewalks, and our local police.

Additionally, Hollister’s frequently used streets, sidewalks, and community facilities require ongoing maintenance at a cost far beyond its currently available resources.

What types of City services could Measure V support?
Measure V is estimated to provide $300,000 annually in locally controlled funding to help maintain:

• Police and fire services
• City streets and sidewalks
• Solid waste services
• City parks and programs
• General support to all City functions

What is a Transient Occupancy Tax?
Transient Occupancy Tax (TOT), also known as "hotel tax" or "bed tax” is paid on temporary lodging at hotels, motels, inns, and other places by overnight visitors. People will pay these taxes when renting a room, bed, or additional space. Increasing the rate of the TOT would not increase taxes on Hollister residents and the tax would still only be paid by overnight visitors. 

Can the State take or redirect these funds?
No, legally, the funds collected from Measure V can only be used to support City services in our community. The State cannot take or redirect these funds for its own purposes.

How does Hollister’s TOT compare to other cities and towns in the area?
The City of Hollister has one of the lowest TOT rates in the region at 8%. By raising the tax to 12%, we will match nearby communities and ensure visitors to our area help pay for the City services they currently use.

 
Does Measure V include fiscal accountability requirements?
Yes, the City is committed to transparency and responsible fiscal stewardship. All money raised by Measure V would stay local to fund services, programs, and projects here in Hollister. By law, no funds could be taken by the State. Annual independent audits of expenditures would also be required. These fiscal safeguards would help ensure transparency and that all funds are locally controlled. 

When will Measure V be on the ballot?
Measure V will appear on the November 5, 2024 ballot. 

Will Measure V negatively impact tourism or visitor accommodations in our city?
Measure V is designed to balance generating revenue for the City and maintaining a competitive and attractive environment for visitors. The funds generated will help improve and enhance visitor services, ultimately benefiting the tourism industry in our community. 

Who is exempt from paying Transient Occupancy Tax?

• Any occupancy exceeding 30 consecutive days
• Any Federal or State officer or employee on official business; (an exemption certificate must accompany these claims for exemptions.)
• Any occupancy of hotels reserved exclusively for religious, charitable, educational, or welfare purposes 

What level of support is required to pass Measure V?
A simple majority is required for Measure V to pass.

 How can I share feedback and learn more about Measure V?
The City values questions, comments, and feedback from its community members. If you have questions or input, please visit our website at https://hollister.ca.gov/.

Additional Information Regarding Measure V:
TOT Ballot Measure Text (PDF)
Argument In Favor of TOT Ballot Measure (PDF)
TOT Ballot Measure Impartial Analysis (PDF)

No argument against Measure V was filed in the Office of the City Clerk.