An increase in one tax could bring $7.6 million yearly to Monterey County, and it won't be on local long-term residents.
Monterey County voters will have the opportunity to vote on Measure E in the Nov. 3 election, which would increase the transient occupancy tax rate by two percentage points from 10.5 percent to 12.5 percent in unincorporated parts of Monterey County. There is no end date on the tax.
The tax would be passed onto people staying in hotels or short term lodging for under 30 days. The revenue would fund services for roads, water, sewer infrastructure, emergency services, libraries, parks, health care and reducing homelessness, according to analysis by the county attorney Susan Blitch.
The County of Monterey is scrounging for more money—budget projections for the fiscal years 2026-27 showed a shortfall of $40.6 million. The tax would be housed in the County's general fund, and would be used to offset the cost of tourism on county infrastructure.
In April and May, EMC Research conducted a study for the county to determine support among residents in unincorporated Monterey County—about 59 percent of 500 likely voters supported the measure.
The Board of Supervisors unanimously approved the measure for the ballot in July.
The tax would not apply to incorporated parts of the county, and many cities already have their own transient occupancy tax. For example, the transient tax in Monterey and Seaside is 12%, and 10% in Salinas.
Residents of Carmel will also be voting on a transient occupancy tax, Measure M, to raise their hotel tax from 10 percent to 12 percent.
No committees in support or against the measure have been formed, according to the Monterey County campaign finance portal.
In support of it is the Monterey Bay Central Labor Council, an association of labor unions in Monterey and Santa Cruz counties. Interim Executive Director Francisco Rodriguez says that their hospitality union affiliates were in support of it, leading them to endorse it.
“We are hopeful that it passes and that it will be a way to ensure that services that are necessary are provided and funded,” Rodriguez says.