Introduce by title and waive first reading of an ordinance entitled, "An Ordinance of the Board of Supervisors of the County of Yolo amending Title 3, Chapter 7, of the Yolo County Code of Ordinances to Increase the Transient Occupancy Tax (TOT) Rate in the Unincorporated Areas of the County from 8% to 12% of the Rent Charged, and Other Changes;" and consider draft ballot question. (No general fund impact) (Webb/Tengolics) (Est. Staff Presentation: 5 min)

At the May 5, 2026 meeting, the Board gave direction to staff to return to the Board with an update to the County's Transient Occupancy Tax (TOT) ordinance to increase the TOT rate in the unincorporated area from 8% to 12%. A clean and redline version of the amended ordinance is attached as Att. A and Att. B, respectively. Such an proposed ordinance change that increase the TOT rate requires voter approval. TOT is a general tax on lodging night stays of a 30-day duration or less. The current rate in Yolo County is 8%, which lags our city and regional peers. The proposed 4% TOT rate is estimated to generate $250,000 in additional General Fund revenue annually. Attachment C includes an overview of TOT rates and the timeline for a potential November ballot measure with the June 23 Board meeting being the last meeting for action before the ballot deadline. Att. D includes a list of current lodgings remitting TOT within the unincorporated area.

Should the Board place the amended ordinance on the November 3, 2026 ballot, it would be a countywide vote, not just the unincorporated area, and would require a simple majority vote (50%+1) of voters to pass. Below is the draft ballot question on which staff seeks Board feedback. In accordance with any Board feedback, staff anticipates returning at the June 2, 2026 Board of Supervisors meeting to present the amended TOT ordinance for second reading and the necessary resolution, along with the final ballot question, to place the amended ordinance and proposed TOT increase on the November general election ballot for adoption. 

Draft Ballot Measure Question:
YOLO COUNTY UNINCORPORATED AREA HOTEL TAX
To fund local programs and services – such as maintaining health and human services program levels, enhancing public safety, and supporting emergency preparedness – shall the ordinance increasing Yolo County’s Transient Occupancy Tax, which is paid only by hotel/lodging/short-term rental guests in unincorporated areas (excluding cities), from 8% to 12% of the total rent charged, providing approximately an additional $250,000 annually until ended by voters, be adopted?