Roseville Measure “C” hotel and lodging tax could add upwards of $3 million to city coffers

Aligning with other California destinations benefits Roseville

Roseville, Calif. – Coming up on the November ballot in Roseville is Measure C. The measure would boost the tax the city collects from hotel and short-term stays.

Roseville’s current 6% rate has not changed since October 1975. Lincoln has been at 10% for well over 20 years, while neighboring Rocklin has been at 8% for over 37 years, according to the State’s Controller’s office. The increase tax will finally bring some parity with other California destinations while helping to support city finances.

Roseville’s growth and progress continues to shape the region. Becoming a more robust California destination while attracting visitors for youth sports, business, and shopping has hotel room nights surging.

While, according to The City of Roseville, “The funds may be used for general unrestricted municipal purpose.”, many residents prefer a more targeted use of funds geared toward civic amenities instead of being swept into general use.
Overall, Yes on Measure “C” is long overdue and will benefit the community of Roseville.

Below, the City of Roseville has provided the following assessment and information points on Measure C.

What is the Hotel and Lodging Tax?

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. A hotel is defined in the Roseville Municipal Code as any hotel, inn, hostelry, tourist home or house, motel, rooming house, or other lodging place. According to the California State Controller’s website, most U.S. cities currently impose this tax, including 419 California cities.

Who pays the Hotel and Lodging Tax?

People who stay in hotels and short-term rentals within the Roseville City limits.

Why are voters being provided the opportunity to consider amending the current rate?

The City’s Hotel and Lodging Tax has remained unchanged for 47 years, while demand for City services, including from visitors, has increased along with the number of hotels—from 4 to 17.

With its ongoing focus on aligning costs with services, and reviewing expenses and revenues to determine if updates are warranted, the City placed Measure C on the November ballot for voters to decide.

What is the tax currently and what is proposed?

Roseville’s Hotel and Lodging Tax rate is currently 6% and has remained unchanged since 1975. Measure C proposes a 4% increase rent charged for a hotel room or short-term rental. (View PDF below of all cities and rates)

What’s an example of how much this would add to the cost of a hotel room night in Roseville?

Based on, say, a daily room rate of $125, it is estimated that the 4% increase proposed by Measure C would increase the cost of that overnight hotel stay by $5 per night.

How much additional funding would be raised?

The City anticipates that, if approved by the voters, the passage of this Measure C would generate an estimated revenue increase of $2.7 million to $3 million annually.

The increase represents approximately 1% of the General Fund’s anticipated revenues

How would the additional funding be used?

The City may use revenues for any general unrestricted municipal purpose, including, but not limited to, essential services, such as 9-1-1 emergency response; repairing potholes and streets; neighborhood police patrols; fire protection; addressing blight; maintaining existing and future City amenities; and other general government services.

Can the hotel tax revenues be taken by the State?

No. Hotel and Lodging Tax generated in the City of Roseville stays in Roseville and cannot be taken by the State of California or federal government.

Why is this tax referred to as TOT or Transient Occupancy Tax?

When the legislature established the authority in 1963 for local jurisdictions to collect this tax, this was the term in use at the time to reflect the temporary nature of a visitor’s stay in a hotel or temporary lodging. A variety of terms are used throughout the country, including hotel tax, bed tax, and lodging tax.

Do Roseville residents pay this tax when they stay at hotels in other cities?

Municipalities throughout the country have various levels of a hotel tax, also called a bed tax or lodging tax.

California Transient Occupancy Taxes

related

• Rocklin Measure F