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Receive a presentation from the Department of Treasurer-Tax Collector-County Clerk (TTCCC) regarding a potential revenue measure on the November 2026 General Election ballot to increase Solano County’s Transient Occupancy Tax (TOT) rate from 5% to 12%; Direct staff to return to the Board on June 23, 2026, to initiate the ballot process; Direct staff to prepare the necessary resolution for amendments to Solano County Code Chapter 11, Article II
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Published Notice Required? Yes ___ No __X__
Public Hearing Required? Yes ___ No __X__
RECOMMENDATION:
The Department of Treasurer-Tax Collector-County Clerk (TTCCC) recommends the Board of Supervisors:
1. Receive a presentation from the Department of TTCCC on the current TOT structure, comparative TOT rates in neighboring and comparable California counties and cities, and projected revenue impacts associated with increasing the current TOT rate of 5% to 12% by placing a potential revenue measure on the November 2026 General Election ballot; and
2. Direct staff to return to the Board on June 23, 2026, with a proposed resolution in support of placing a measure on the November 2026 General Election ballot to increase Solano County’s TOT rate; and
3. Direct staff to prepare the necessary amendments to Solano County Code Chapter 11, Article II.
SUMMARY:
The Department of TTCCC will provide an overview of Solano County’s current TOT structure, comparative TOT rates in neighboring and comparable California counties and cities, and projected revenue impacts associated with increasing the TOT rate to 12%. Solano County established its TOT in 1964 through Ordinance No. 518, pursuant to Revenue and Taxation Code section 7280. The current rate for TOT is 5% per taxable receipts. A proposed increase in TOT would generate additional General Fund revenues to support general governmental services.
The proposed measure would be structured as a general tax pursuant to Article XIII C of the California Constitution (Proposition 218) and would require approval by a simple majority of countywide voters, with all revenues deposited into the County General Fund. This item is informational only and seeks Board direction on whether staff should continue developing a ballot measure proposal for future Board consideration.
FISCAL IMPACT:
The costs associated with preparing this agenda item are nominal and included in the Department’s FY2025/26 Working Budget. If directed to proceed, staff will return with estimated election and public outreach costs associated with placement of the measure on the November 2026 ballot. The estimated cost for a countywide ballot measure is approximately $138,651.
Estimated additional annual revenues generated by the proposed measure, based on FY2024/25 collections, would total $58,500.42 for that fiscal year. Actual revenues may fluctuate based on market conditions, facility output, and future project approvals.
DISCUSSION:
Existing Transient Occupancy Tax
Solano County established its TOT in 1964 through Ordinance No. 518, pursuant to Revenue and Taxation Code section 7280. The tax applies to guests who occupy or have a right to occupy a living space or establishment for 30 days or less in the unincorporated county. Solano County currently has several properties located in the unincorporated area that qualify for TOT. 12 properties are clearly identified by address, while additional properties remit TOT through Airbnb, Homeaway, and Gather Vacations, which do not provide property-specific information. The California Association of County Treasurers and Tax Collectors is currently seeking approval of legislation requiring these companies to provide this information.
TOT collections in the unincorporated area for the last four fiscal years have declined, with collections of $138,430.46, $115,184.66, $76,550.10 and $51,965.92 in FY2021/22, FY2022/23, FY2023/24, and FY2024/25, respectively, including penalty charges for late remittance. These figures illustrate a downward trend in TOT revenue, underscoring the need to evaluate whether a rate adjustment could stabilize funding for County services supported by TOT revenue.
Proposed Transient Occupancy Tax Amendments
The proposed amendments would increase the existing TOT rate from 5% of taxable receipts to 12%. The estimated annual revenue from the proposed rate is approximately $58,500.42. TOT is collected by the host and remitted to the county quarterly.
Legal Framework and Ballot Requirements
The proposed measure would be structured as a general tax pursuant to Article XIII C of the California Constitution (Proposition 218).
As a general tax:
• revenues must be deposited into the County General Fund;
• revenues may be used for any lawful governmental purpose; and
• approval requires a simple majority vote of countywide voters.
The measure would apply to properties located within the unincorporated areas of Solano County.
To qualify for the November 3, 2026, General Election ballot, the Board must approve a resolution calling for ballot placement of a measure no later than August 4, 2026. The measure would be voted on by all registered Solano County voters who reside in cities and unincorporated areas.
Public Outreach
If directed to proceed, staff will prepare informational materials regarding the proposed measure and election process. All materials and communications prepared using County resources would be reviewed by County Counsel to ensure compliance with applicable laws prohibiting the use of public resources for campaign advocacy. The County’s communications would be limited to factual and informational content and would not advocate for approval or rejection of the measure.
ALTERNATIVES:
Alternative 1 - Request additional analysis
The Board could direct staff to return with additional analysis on revenue projections or ballot timing.
Alternative 2 - No Further Direction
The Board could decline to provide further direction regarding the preparation of a ballot measure. Under this alternative, the County would retain the current TOT rate of 5%.
OTHER AGENCY INVOLVEMENT:
The Department coordinated with County Counsel and the County Administrator’s Office in the development of this item. County Counsel review of the final resolution, ballot materials, and related election documents would occur prior to final Board consideration and ballot placement.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION