Gilroy hotel tax increase will generate thousands of dollars

A ballot measure in Gilroy is on a path to victory that will allow the City Council to raise its hotel tax significantly. As of Friday, Measure B shows voter approval at 65%, which gives the city the ability to raise the transient occupancy tax (TOT) from its current 9% to as much as 13%. The measure only requires a simple majority to pass. Contingent on how the council votes, the city could see an additional $300,000 in annual general fund revenue at 11% or $700,000 at 13%. City Administrator Matt Morley said the initial plan is to bump the hotel tax to 11%, which he said is comparable to other Santa Clara County cities, though hoteliers have some concerns about what it could do for future overnight stays. “If the current results hold, Measure B will provide additional locally controlled funding to support the services our community relies on, paid for by visitors to Gilroy who also benefit from those services,” Morley told San José Spotlight. Related Stories