HomeMy WebLinkAboutResolution No. 2026-30 | Resolution Transient Occupancy Tax Ballot Measure | Adopted 05/04/2026
RESOLUTION 2026-30
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF GILROY, SUBMITTING TO THE QUALIFIED VOTERS
OF THE CITY OF GILROY, A MEASURE INCREASING
THE RATE OF THE CITY'S TRANSIENT OCCUPANCY
(HOTEL) TAX FROM 9% TO A NOT TO EXCEED
MAXIMUM RATE OF 13% AND REQUESTING THE
COUNTY OF SANTA CLARA TO CONSOLIDATE SAID
ELECTION WITH THE STATEWIDE GENERAL
ELECTION TO BE HELD ON NOVEMBER 3, 2026
WHEREAS, a General Municipal Election on Tuesday, November 3, 2026, has
been called for by Resolution No. 2026-29, adopted on Monday, May 4, 2026; and
WHEREAS, the City of Gilroy currently imposes a Transient Occupancy Tax
(“TOT”) on the privilege of occupying a room or other lodging in a hotel, motel, or short-
term rental for 30 days or less; and
WHEREAS, Chapter 25A of the Gilroy City Code establishes the City’s TOT paid
by hotel, motel, and short-term rental guests staying in Gilroy for thirty days or less; and
the current TOT rate is 9%; and
WHEREAS, Revenue and Taxation Code Section 7280 authorizes the City to levy
a tax on the privilege of occupying a room or rooms, or other living space, in a hotel, inn,
tourist home or house, motel, or other lodging for a period of thirty (30) consecutive
calendar days or less; and
WHEREAS, the TOT is a general tax, the proceeds of which shall be deposited
into the City’s General Fund and may be used for any lawful municipal purpose, including
but not limited to public safety, infrastructure maintenance, parks and recreation,
community services, and general government operations; and
WHEREAS, Article XIII C, Section 2(b) of the California Constitution, as added
by Proposition 218 in 1996, requires that any general tax must be submitted to the electorate
and approved by a majority vote of the qualified voters of the city voting in an election on
the issue; and
WHEREAS, Article XIII C, Section 2(b) of the California Constitution further
requires that an election for the approval of a general tax must be consolidated with a
regularly scheduled general election for members of the governing body of the local
government; and
WHEREAS, pursuant to California Elections Code Section 9222, the City Council
may, without receipt of a petition, submit a proposition to the voters at any established
election date; and
WHEREAS, the adoption of this measure is not a “project” subject to the
requirements of the California Environmental Quality Act (“CEQA”) pursuant to CEQA
Guidelines Section 15378(b)(4) because it is the creation of a government funding
mechanism that does not involve any commitment to a specific project that may result in a
potentially significant physical impact on the environment; and
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Resolution No. 2026-30
Resolution Transient Occupancy Tax Ballot Measure
City Council Regular Meeting | May 4, 2026
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WHEREAS, the City Council of Gilroy desires to submit to the voters a proposed
increase in the rate of the TOT from nine percent (9%) to a not-to-exceed maximum rate
of thirteen percent (13%) and place a measure on the ballot for the next General Municipal
Election on November 3, 2026.
WHEREAS, by establishing a maximum rate of thirteen percent (13%), the City
Council may, by resolution, set the actual rate at any amount at or below the voter-approved
ceiling without requiring further voter approval, thereby providing the City with the
flexibility to adjust the rate as fiscal conditions warrant; and
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL AS
FOLLOWS:
Section 1. A General Municipal Election is hereby called in the City of Gilroy to
be held on Tuesday, November 3, 2026, to vote on a ballot measure to increase the rate of
the TOT from nine percent (9%) to a not-to-exceed maximum rate of thirteen percent
(13%).
Section 2. The ballot measure will be placed on the ballot for Tuesday, November
3, 2026, General Municipal Election, which shall be substantially in the following form:
Transient Occupancy Tax Rate
To maintain critical City services such as
street/pothole repair, park and recreation programs,
emergency preparedness for storms, flooding and
wildfires, and police and fire response shall the City
of Gilroy measure raising the Transient Occupancy
Tax (hotel tax) rate from 9% to a maximum of 13%,
set by Council resolution, providing $700,000
annually paid only by hotel/lodging guests, with
annual independent audits, that cannot be taken by
Sacramento, until ended by voters, be adopted?
YES
NO
Section 3. The vote requirement for the measure to pass is a majority vote of the
qualified voters of the city voting in an election on the issue pursuant to Article XIII C,
Section 2(b) of the California Constitution.
Section 4. The City Council hereby requests the Board of Supervisors of the
County of Santa Clara, California, to permit the Registrar of Voters of Santa Clara
County to render to the City of Gilroy such services as the City Clerk of the City of
Gilroy may request relating to the conduct of the above-described General Municipal
Election with respect to the following matters:
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Resolution No. 2026-30
Resolution Transient Occupancy Tax Ballot Measure
City Council Regular Meeting | May 4, 2026
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Coordination of election precincts, polling places, voting booths, voting systems,
and election officers; printing and mailing of voter pamphlets; preparation of the tabulation
of the results of votes cast, and all other services necessary to conduct an election.
Section 5. The City Council hereby requests, consents to, and orders that the
Registrar of Voters of the County of Santa Clara consolidate the General Municipal
Election called and ordered to be held on November 3, 2026, with any other election that
may be held on that date.
Section 6. The City Council hereby authorizes the Board of Supervisors of Santa
Clara County, California, to canvass the returns of the General Municipal Election.
Section 7. The City Council hereby directs the City Clerk to reimburse the County
of Santa Clara in full for any of the above-mentioned services which may be performed by
the Registrar of Voters, upon presentation of a bill to the City, with funds already
appropriated to the City Clerk for election purposes.
Section 8. The City Council hereby directs the City Clerk to take all actions
necessary to facilitate the General Municipal Election in the time frame specified herein
and comply with provisions of the Elections Code of the State of California, City Charter,
Ordinances, Resolutions, and Policies regarding the conduct of the General Municipal
Election.
Section 9. Pursuant to Section 12111 of the California Elections Code, the City
Council hereby directs the City Clerk to:
(a) cause a synopsis of the proposed measure to be published at least one time
not later than one week before the election in the Gilroy Dispatch, a newspaper of
general circulation within the City of Gilroy;
(b) consolidate the Notice of Measure to be Voted with the Notice of Election
into a single notice;
(c) cause copies of the full text of the proposed measure set forth in the attached
Exhibit A to be printed in the Voter Information Portion of the Sample Ballot;
(d) cause copies of the Sample Ballot to be mailed to each of the qualified
electors of the City of Gilroy; and
(e) do all other things required by law to submit the specified measure above to
the electors of the City of Gilroy at the General Municipal Election, including causing
the full text of the proposed measure to be made available in the Office of the City
Clerk at no cost and posted on the City Clerk's website.
Section 10. Pursuant to Sections 9282 and 9285 of the California Elections Code,
the City Council hereby approves the submittal of direct arguments for and against the
ballot measure, with a maximum of 300 words in length, if any, and authorizes the City
Council or any member or members of the Council to author and submit a ballot measure
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Resolution No. 2026-30
Resolution Transient Occupancy Tax Ballot Measure
City Council Regular Meeting | May 4, 2026
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argument in favor of the ballot measure, and approves the submittal of rebuttal arguments
in response to arguments for and against the ballot measure, with a maximum of 250
words in length, and authorizes the City Council or any member or members of the City
Council to author and submit a rebuttal, if any., to the Santa Clara County
Registrar of Voters (ROV) by Tuesday, August 11, 2026.
Section 11. The City Council hereby directs the City Clerk to transmit a copy of
the measure qualifying for placement on the ballot with a maximum of 500 words in length
to the City Attorney for preparation of an impartial analysis.and transmit to the Santa Clara
County Registrar of Voters by Tuesday, August 18, 2026.
Section 12. The City Council hereby acknowledges that the consolidated election
will be held and conducted in the manner prescribed in California Elections Code Section
10418.
Section 13. The City Council hereby directs the City Clerk to file certified copies
of this resolution with the Board of Supervisors and the Registrar of Voters of the County
of Santa Clara not later than eighty-eight (88) days prior to November 3, 2026, as required
by California Elections Code Section 10403.
Section 14. The City Council hereby finds and determines that this measure is not
a “project” as defined under Section 15378(b)(4) of the California Environmental Quality
Act (“CEQA”) Guidelines because it is a government funding mechanism or other fiscal
activity that does not involve any commitment to any specific project which may result in
a potentially significant physical impact on the environment. Therefore, pursuant to Section
15060(c)(3) of the CEQA Guidelines, CEQA does not apply.
Section 15. If any section, subsection, sentence, clause, phrase, or portion of the
ordinance submitted to the voters by this resolution is for any reason held to be invalid or
unconstitutional by the decision of any court of competent jurisdiction, such decision shall
not affect the validity of the remaining portions thereof.
Section 16. If approved by a majority of the voters, the ordinance submitted to the
voters by this resolution shall be considered as adopted upon the date that the vote is
declared by the City Council and shall go into effect ten (10) days after that date pursuant
to Elections Code Section 9217. However, the levying and collection of the transient
occupancy tax at the rate established pursuant to this ordinance shall commence effective
January 1, 2027, or as soon thereafter as this ordinance shall go into effect.
Section 13. This resolution shall take effect immediately upon adoption.
.
PASSED AND ADOPTED by the City Council of the City of Gilroy at a regular meeting
duly held on the 4th day of May 2026 by the following roll call vote:
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Resolution No. 2026-30
Resolution Transient Occupancy Tax Ballot Measure
City Council Regular Meeting | May 4, 2026
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AYES: COUNCIL MEMBERS: CLINE, FUGAZZI, HILTON, MARQUES,
RAMIREZ, BOZZO
NOES: COUNCIL MEMBERS: BRACCO
ABSTAIN: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: NONE
APPROVED:
Greg Bozzo, Mayor
ATTEST:
_______________________
Kim Mancera, City Clerk
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Resolution No. 2026-30
Resolution Transient Occupancy Tax Ballot Measure
City Council Regular Meeting | May 4, 2026
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CERTIFICATE OF THE CLERK
I, KIM MANCERA, City Clerk of the City of Gilroy, do hereby certify that the attached
Resolution No. 2026-30 is an original resolution, or true and correct copy of a City Resolution,
duly adopted by the Council of the City of Gilroy at a Regular Meeting of said Council held
Monday, May 4, 2026, with a quorum present.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of the
City of Gilroy this Wednesday, May 6, 2026.
____________________________________
Kim Mancera
City Clerk of the City of Gilroy
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EXHIBIT A
ORDINANCE NO. 2026-__
AN ORDINANCE OF THE PEOPLE OF THE CITY OF
GILROY AMENDING SECTION 25A.2 OF CHAPTER 25A
OF THE GILROY CITY CODE (TRANSIENT OCCUPANCY
TAX) TO INCREASE THE MAXIMUM TRANSIENT
OCCUPANCY TAX RATE FROM NINE PERCENT (9%) TO
AN AMOUNT NOT TO EXCEED THIRTEEN PERCENT
(13%)
WHEREAS, Chapter 25A of the Gilroy City Code establishes the City's Transient
Occupancy Tax ("TOT"), which requires that each "transient" who occupies a "hotel," as those
terms are defined in Section 25A.1 of the Gilroy City Code, must pay a TOT at the rate of nine
percent (9%) of the rent charged by the operator for the privilege of occupying the hotel; and
WHEREAS, Revenue and Taxation Code Section 7280 authorizes the City to levy a tax
on the privilege of occupying a room or rooms, or other living space, in a hotel, inn, tourist home
or house, motel, or other lodging for a period of thirty (30) consecutive calendar days or less; and
WHEREAS, the TOT has not been adjusted since 1983, when the rate was set at nine
percent (9%) by Ordinance No. 83-14; and
WHEREAS, the proposed TOT increase would apply only to guests who stay in local
hotels, motels, and other short-term lodging establishments for a period of thirty (30) consecutive
calendar days or less; and
WHEREAS, the TOT is a general tax, the proceeds of which are deposited into the City's
General Fund and may be used for any lawful municipal purpose, including but not limited to
public safety, infrastructure maintenance, parks and recreation, community services, and general
government operations; and
WHEREAS, additional General Fund revenue will help the City of Gilroy maintain and
enhance essential city services for the benefit of its residents and visitors; and
WHEREAS, Article XIII C, Section 2(b) of the California Constitution, as added by
Proposition 218 in 1996, requires that any general tax must be submitted to the electorate and
approved by a majority vote of the qualified voters of the city voting in an election on the issue;
and
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WHEREAS, Article XIII C, Section 2(b) of the California Constitution requires that an
election for the approval of a general tax must be consolidated with a regularly scheduled general
election for members of the governing body of the local government; and
WHEREAS, November 3, 2026 is the date of the next statewide general election at which
members of the Gilroy City Council will be elected, and this ordinance is being submitted to the
voters at that election; and
WHEREAS, the City Council may, by resolution, set the actual tax rate at any amount at
or below the voter-approved ceiling of thirteen percent (13%) without requiring further voter
approval, thereby providing the City with the flexibility to adjust the rate as fiscal conditions
warrant, provided the rate does not exceed thirteen percent (13%); and
WHEREAS, the adoption of this ordinance is not a "project" subject to the requirements
of the California Environmental Quality Act ("CEQA") pursuant to CEQA Guidelines Section
15378(b)(4) because it is the creation of a government funding mechanism that does not involve
any commitment to a specific project that may result in a potentially significant physical impact
on the environment.
NOW, THEREFORE, THE PEOPLE OF THE CITY OF GILROY DO ORDAIN AS
FOLLOWS:
Section 1. Amendment of Section 25A.2.
Section 25A.2 ("Tax imposed") of Chapter 25A ("Transient Occupancy Tax") of the Gilroy
City Code is hereby amended to read in its entirety as follows:
"25A.2 Tax imposed.
a) For the privilege of occupancy in any hotel, each transient is subject to and
shall pay a tax as imposed from time to time by the City Council. Said tax
shall be a percentage of the rent charged by the operator for the occupancy.
b) On and as of January 1, 2027, and continuing thereafter until further change
by City Council resolution, the amount of the tax imposed (the tax rate) is
eleven percent (11%) of the rent charged by an operator. Any further
changes to the tax rate may be made by City Council resolution, provided
that the rate shall not exceed thirteen percent (13%). Any such change to
the tax rate shall take effect no sooner than sixty (60) days following the
adoption of the resolution by the Council. If at any time no Council
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resolution setting a different tax rate is in effect, then the tax rate shall be
eleven percent (11%).
c) Said tax constitutes a debt owed by the transient to the city, which is
extinguished only by payment to the operator or to the city. The transient
shall pay the tax to the hotel operator at the time the rent is paid. If the rent
is paid in installments, a proportionate share of the tax shall be paid with
each installment. The unpaid tax shall be due upon the transient's ceasing to
occupy space in the hotel. If for any reason the tax due is not paid to the
operator of the hotel, the director of finance may require such tax to be paid
directly to the director of finance."
Section 2. Remaining Provisions Unchanged.
Except as specifically amended by this ordinance, all other provisions of Chapter 25A of
the Gilroy City Code shall remain in full force and effect. All references in other provisions of the
Gilroy City Code to Chapter 25A or to the transient occupancy tax shall continue to apply to
Chapter 25A as amended by this ordinance.
Section 3. Audits and Accountability.
All proceeds resulting from the transient occupancy tax, as amended by this ordinance,
shall be deposited into the City's General Fund and shall become subject to the same independent
audit requirements as other General Fund revenues. An annual report detailing TOT revenues
collected shall be made available for public review.
Section 4. California Environmental Quality Act.
The City Council finds and determines that this ordinance is not a "project" as defined
under Section 15378(b)(4) of the California Environmental Quality Act ("CEQA") Guidelines
because it is a government funding mechanism or other fiscal activity that does not involve any
commitment to any specific project which may result in a potentially significant physical impact
on the environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines,
the actions proposed herein are not subject to CEQA.
Section 5. Severability.
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If any section, subsection, sentence, clause, phrase, or portion of this ordinance is for any
reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction,
such decision shall not affect the validity of the remaining portions of this ordinance. The People
of the City of Gilroy hereby declare that they would have adopted this ordinance and each and
every section, subsection, sentence, clause, phrase, or portion thereof, irrespective of the fact that
any one or more sections, subsections, sentences, clauses, phrases, or portions thereof be declared
invalid or unconstitutional.
Section 6. Effective Date.
This ordinance relates to the levying and collecting of the City's transient occupancy tax.
This ordinance shall be adopted if approved by a majority of the voters voting on the measure at
the statewide general election to be held on November 3, 2026. If so approved, this ordinance shall
be considered as adopted upon the date that the vote is declared by the City Council and shall go
into effect ten (10) days after that date pursuant to Elections Code Section 9217. However, the
levying and collection of the transient occupancy tax at the rate established pursuant to this
ordinance shall commence effective January 1, 2027, or as soon thereafter as this ordinance shall
go into effect.
Section 7. Publication.
The City Clerk shall certify to the passage and adoption of this ordinance and shall cause
the same, or a summary thereof, to be published and posted in the manner required by law.
* * * * *
PASSED AND ADOPTED by the People of the City of Gilroy at the statewide general election
held on November 3, 2026.
ATTEST:
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___________________________________
City Clerk, City of Gilroy
___________________________________
Mayor, City of Gilroy
APPROVED AS TO FORM:
___________________________________
City Attorney, City of Gilroy
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