Measure E passes, hiking taxes on short term stays in unincorporated Monterey County.

Monterey County voters have overwhelmingly voted in support of an additional tax on vacation stays in unincorporated areas. 

Out of 85,860 votes counted so far, 60,976, or 71 percent, voted yes on Measure E, which would increase the transient occupancy tax rate from 10.5 percent to 12.5 percent.

The tax would apply to the cost charged to a person staying in a property for under 30 days, such as a hotel or short-term rental. It would only apply to unincorporated Monterey County lands, like Big Sur, Carmel Valley or Pebble Beach, for example. 

The transient occupancy tax increase has no end date and is estimated to bring the County about $7.6 million annually. 

The existing 10.5-percent transient occupancy tax and the new 12.5-percent tax is within the ballpark for such taxes in incorporated cities; the tax is 12 percent in Monterey and Seaside, and 10 percent for Salinas. 

Revenue from Measure E will fund services for roads, water, sewer infrastructure, emergency services, libraries, parks, health care and reducing homelessness, according to an analysis by County Counsel Susan Blitch.

Carmel voters also said yes to a transient occupancy tax hike this election cycle with Measure M, raising the city's rate from 10 to 12 percent. It is expected to generate about $1.9 million annually for the town.