The Abridged version:
- If passed, Measure X would raise the transient occupancy tax in unincorporated Yolo County.
- The tax increase, which would not apply to Davis, Winters, West Sacramento or Woodland, would bring in roughly $250,000 a year.
- There are 10 lodging facilities in Yolo County where the tax would be levied.
As Yolo County climbs out of a deep budget hole, voters will decide in November whether to supply a narrow foothold.
If approved, Measure X would increase the tax that travelers pay when staying at hotels or other temporary lodging in unincorporated parts of Yolo County. Officials say the higher transient occupancy tax, up from 8% of the bill to 12%, could bring in as much at $250,000.
“It’s not a huge amount, but at this point every bit is essential,” Supervisor Lucas Frerichs said earlier this year. “We’ve been a little behind the eight ball when it comes to what other jurisdictions are doing.”
The change would apply to 10 lodging facilities in unincorporated Yolo County. It would not affect the rate in Davis, Woodland, Winters or West Sacramento.
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Ongoing budget woes
Yolo County faced a $35 million budget deficit at the beginning of this fiscal year. To fill that gap, supervisors and staff leaned heavily on reserves and job cuts, with the Health and Human Services Agency being particularly hit hard.
Despite the painful cuts this year, the county’s expenses continue to increase, meaning it will have to find meaningful new streams of income to right the ship.
Two short-term options that staff identified were the transient occupancy tax, and righting a misallocation of property tax funds from the state that has shorted the county about $3 million a year for almost 30 years.
The misallocation, which is from the Educational Revenue Augmentation Fund, would have to be fixed by the state Legislature during the budget process. That did not happen this year.
Supervisors have also discussed raising the countywide sales tax in the future, which would likely represent a larger source of revenue. But that would also require a vote, so the earliest possible passage would be in 2028.
A small boost for the general fund
Measure X was approved for the ballot after a unanimous vote by the Yolo County Board of Supervisors. Four supervisors are listed as supporters of the measure on the county’s elections website. There was no official argument against the measure filed.
If it’s passed and an increased transient occupancy tax is levied, the money will go into the county’s general fund, where it would then be available for appropriation.
If Measure X fails, the transient occupancy tax will remain at 8%.
