Monterey hotel-tax increase heads to November vote; $75k outreach planned
Monterey County supervisors considered resolutions on July 7 aimed at putting a Transient Occupancy Tax (TOT) measure before voters in November—alongside a proposed $75,000 budget adjustment for educational outreach and public engagement.
Quick explainer: Monterey’s “bed tax” (TOT)
In Monterey County, the Transient Occupancy Tax (TOT)—often called a “bed tax” or “hotel tax”—is 10.5% of the rent charged to transient guests at covered lodging.
The county’s TOT page says it applies to lodging in unincorporated areas, including hotels/motels, commercial and limited vacation rentals, and homestays rented by owners located in the unincorporated areas.
According to the same overview, TOT revenues support programs intended to stimulate tourism, promote the economy, create jobs, and/or support quality of life.
What supervisors took up on July 7
In agenda item 18, the Board of Supervisors considered two related resolutions:
- Calling an election so qualified voters can decide on a countywide measure to increase the existing TOT in the unincorporated area. The agenda describes increasing the 10.5% rate “by 2%,” with a 4/5 vote required.
- A budget amendment to increase appropriations by $75,000 to support educational outreach and public engagement. The agenda says the increase would be financed by a reduction in contingencies, also requiring a 4/5ths vote.
Rate change: 10.5% to 12.5% (the practical impact)
The July 7 agenda uses “increase … by 2%” language. In plain terms, the proposal described in local reporting would change the unincorporated-area TOT from 10.5% to 12.5%—a two-percentage-point increase.
Scope matters: the proposed change is for unincorporated areas of Monterey County, not for incorporated cities.
Why it’s being proposed (budget and revenue planning)
Monterey CountyNow reported the board’s planning context: the proposed two-percentage-point TOT increase is projected to bring in $7.6 million per year for the general fund.
The $7.6 million figure is presented as a projection used in budgeting, not a guarantee of collections.
What residents and lodging operators should watch next
- Ballot language and implementation details: the final measure wording, and how the county explains timing/effective collection steps after the election.
- Who is affected: lodging in unincorporated areas—since TOT rates in incorporated cities may be separate.
- Outreach campaign: whether the $75,000 public-engagement funding targets operators, travelers, or both.
Sources
- Monterey County Board of Supervisors meeting agenda (July 7, 2026) — agenda item 18 (TOT election + $75,000 outreach budget amendment)
- County of Monterey Treasurer-Tax Collector — Transient Occupancy Tax (TOT) overview (includes current 10.5% unincorporated-area rate and who/what it applies to)
- Monterey CountyNow — FY 2026–27 budget coverage with November TOT ballot-measure context and revenue projection
Look for updates to this story
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