Rocklin Measure F: Hotel & Lodging Tax FAQS

Rate Unchanged in Rocklin since 1985

Rocklin, Calif.- The City of Rocklin has put together a FAQ page on this year’s Ballot Measure F. Unchanged in nearly 40 years, the small increase will help Rocklin more closely align Rocklin with many other California destinations.

The November 8, 2022 General Election will have a measure on the ballot to increase the Transient Occupancy Tax (TOT) percentage and change the definition of which businesses will collect TOT. Information about Ballot Measure F is below. To view the measure and proposed amendment to Chapter 5.24 of the City of Rocklin Municipal Code, view Resolution No 2022-152.

WHAT IS A TRANSIENT OCCUPANCY TAX, OR TOT?

• This tax is paid only by persons, primarily visitors, who rent a hotel room or short-term rental, for stays of 30 consecutive days or less. It is not paid by the property owner. Currently, a hotel is defined in the Rocklin Municipal Code as “any structure, or any portion of any structure, which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes, and includes any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, mobile home or house trailer at a fixed location or other similar structure.” According to the California State Controller’s website, most U.S. cities currently impose this tax, including 419 California cities.

HOW IS A TOT DIFFERENT FROM A HOTEL AND LODGING TAX?

• These generally refer to the same thing. Some jurisdictions call their tax a Hotel and Lodging Tax instead of a Transient Occupancy Tax. 

WHO PAYS THE TOT?

• People who stay in hotels, short term rentals, or any other facility listed above within the City of Rocklin limits.

DOES THE TOT APPLY TO RENTERS?

• No, the TOT only applies to persons who occupy short-term lodgings for less than 30 days.

WHAT IS THE TAX CURRENTLY AND WHAT IS PROPOSED?

• Rocklin’s TOT rate is currently 8% and has remained unchanged since 1985 when it was first established. Measure F proposes a 2% increase to the rent charged for a hotel room or short-term rental, and expanding the definition of “hotel” to include campground facilities.

WHAT IS AN EXAMPLE OF THE INCREASE FOR THE COST OF A HOTEL IN ROCKLIN? 

• If you were staying at a hotel in Rocklin and paying a room rate of $100, the 2% increase would equal about $2. The total tax would be 10% of the room rate, or $10 total.

HOW DOES THIS COMPARE TO OUR NEIGHBORING CITIES?

• Roseville and Colfax also have initiatives on the ballot to increase their TOT to 10%. Lincoln and Yuba City currently have a TOT rate of 10%. West Sacramento, Elk Grove, and Rancho Cordova all have TOT rates at 12%. Unincorporated Placer County, Loomis, and Auburn have a TOT rate of 8%.

HOW MUCH ADDITIONAL FUNDING WOULD BE RAISED?

• The 2% increase would amount to approximately $300,000 of funding annually.

HOW WOULD THE ADDITIONAL FUNDING BE USED?

• The City may use TOT revenues for any general unrestricted municipal purpose, including, but not limited to, Police and Fire/Emergency Medical Service response, street/road repair, park maintenance, and other general government services.

CAN THE TAX REVENUE BE TAKEN BY THE STATE?

• No. TOT generated in the City of Rocklin stays in Rocklin and cannot be taken by the State of California or federal government.

HOW DOES MEASURE F IMPACT CAMPING IN ROCKLIN?

• Currently there are no public or private campgrounds in the Rocklin City limits. However, the City has had inquiries over the past few years from potential private campground developers that want to provide overnight accommodation for RV and Trailer users or establish a “Glamping” (“Glamour Camping”) amenity in the City. By expanding the definition of “hotel”, if a campground is established in Rocklin, those overnight stays would be subject to the same TOT tax that users of the City’s hotels and other short-term rentals are charged to ensure that the public services used are paid for by those guests.

IMPARTIAL ANALYSIS BY THE CITY ATTORNEY

City of Rocklin – Measure F
Transient Occupancy Tax – Amendment to Rocklin Municipal Code Chapter 5.24

This Measure contains a proposed amendment to Chapter 5.24 of the City of Rocklin Municipal Code with respect to the City’s transient occupancy tax (TOT). The Measure would increase the City’s Transient Occupancy Tax (TOT) from eight (8) percent to ten (10) percent and expand its application to campgrounds. TOT is a tax charged to guests of hotels and similar short-term lodging, who stay for a period of 30 days or less. Hotel operators collect the tax when guests pay for their accommodations and then remit the tax to the City.

City of Rocklin – Measure F
Transient Occupancy Tax – Amendment to Rocklin Municipal Code Chapter 5.24

This Measure contains a proposed amendment to Chapter 5.24 of the City of Rocklin Municipal Code with respect to the City’s transient occupancy tax (TOT). The Measure would increase the City’s Transient Occupancy Tax (TOT) from eight (8) percent to ten (10) percent and expand its application to campgrounds. TOT is a tax charged to guests of hotels and similar short-term lodging, who stay for a period of 30 days or less. Hotel operators collect the tax when guests pay for their accommodations and then remit the tax to the City.

The TOT is a general tax, meaning the additional revenue generated by the increased TOT would be deposited into the City’s general fund and may be used for any unrestricted general governmental purpose, including but not limited to police and fire services, street and park maintenance. The financial analysis prepared by the city estimates $1.1 million in TOT revenues were generated during fiscal year 2021/2022, with the potential of generating an additional $300,000 annually if the TOT rate is increased to ten (10) percent.

A “Yes” vote increases the Transient Occupancy Tax rate in the City of Rocklin from eight (8) to ten (10) percent and expands its application to campgrounds.

A “No” vote does not increase the Transient Occupancy Tax rate in the City of Rocklin or expand its application to campgrounds, and the City would continue to collect the tax at its current rate.

The measure requires a simple majority vote for approval, and was placed on the ballot by the Rocklin City Council.

This statement is an impartial analysis of the Measure prepared pursuant to California Elections Code section 9280. If you desire a copy of the Measure, please contact the City Clerk’s Office at (916) 625-5560, and a copy will be mailed at no cost to you.

*For copies of Arguments or Rebuttal Statements for Measure F, please contact the City Clerk’s Office at (916) 625-5560.

A Look at California Transient Occupancy Tax

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