Transient Occupancy Tax (TOT) Ballot Measure

What is TOT?

The Transient Occupancy Tax (TOT), also known as the hotel tax, is charged to guests who occupy a room or space in a hotel, motel, or other short-term rental for 30 days or less. The lodging establishment is then responsible for remitting it to the City on a quarterly basis. The TOT is paid by overnight visitors—not local residents.

TOT Ballot Measure Background and Context

On August 5, 2025, the Hanford City Council chose to press the pause button on a Transient Occupancy Tax (TOT) ballot measure until June of 2026. Factors in the decision to wait included the high cost of holding a special election and the possibility of voter fatigue and low voter turnout. Read the full Staff Report.

One month earlier, Council unanimously adopted a resolution calling for and giving notice of a special election to be held on November 4, 2025, to present to voters a measure to amend Chapter 3.24 of the Municipal Code to increase the transient occupancy tax from 8% to a 12% rate.

Staff introduced the proposed TOT increase at the May 5, 2025 council meeting. During that discussion, staff explained that the City's current TOT rate (8%) hasn't been updated since 1985. As tourism and short-term rentals have continued to grow in our region, the TOT has become a stable funding source for the City. In recent years, many neighboring cities have adjusted their TOT rates to better align with industry norms and to support local services, infrastructure, and tourism development. 

TOT Regional Comparison

What will I see on the ballot?

Hanford voters will see the following language on the November ballot.

CITY OF HANFORD TRANSIENT OCCUPANCY TAX MEASURE: Shall a measure be adopted amending the Hanford Municipal Code to increase the maximum rate of the City’s Transient Occupancy (Hotel) Tax paid by hotel and vacation rental guests from 8% to 12%, providing approximately $375,000 annually, for City general services, including, without limitation, police, fire, parks and recreation, maintaining public infrastructure such as streets, sidewalks, parks and facilities, and general government use, until ended by voters?"

Fiscal Impact

For the fiscal year ending June 30, 2024, the City collected TOT from nine (9) hotels and motels and two (2) short-term rental homes within City limits. This amounted to revenues of approximately $750,000. An increase in the TOT from 8% to 12% is projected to result in an additional annual revenue of $375,000, based on current and projected occupancy rates. These additional funds could increase General Fund revenues that support essential services, including public safety, parks, community development and recreation services.