Updated on November 11, 2024
On Election Day, voters in multiple U.S. states cast ballots on measures affecting short-term rentals, passing a mix of new and increased lodging taxes and rejecting more draconian measures. From Alabama to California, communities wrestled with ways to balance tourism with community interests: Arkansas’ Norfolk preserved citywide short-term rentals with a vote against a ban. Meanwhile, voters rejected a measure to slash rental permits in Dana Point, California. Cities across California and Colorado embraced transient occupancy tax increases to boost local budgets, with only a few exceptions. Below is a roundup of these ballot measure results.
Alabama
Houston County passes lodging tax
Houston County voters approved a 1% lodging tax on hotels, motels, and short-term rentals.
The tax narrowly passed with 51% for and 49% against.
According to WDHN, the tax is expected to raise over $500,000 yearly and pay for park and recreational improvements.
Arkansas
Norfolk rejects ban on short-term rentals
Voters in Norfolk, Arkansas, rejected a measure to repeal the STR ordinance permitting short-term rentals in all zoned districts of the city.
A “yes” vote would have resulted in banning short-term rentals in the city limits.
The measure failed with 137 votes against and 89 in favor, according to KTLO.
California
Dana Point voters reject cutting STR permits
Voters in Dana Point, Orange County, rejected Measure T to repeal and replace the city’s short-term rental ordinance with one that would have cut the number of STR permits in half.
Had it been successful, the measure would have reduced the city’s annual revenue by an estimated $450,000, according to an impartial analysis.
The measure was defeated with 63.73% of votes against and 36.27% in favor.
According to the Orange County Register, the initiative was part of an effort to thwart the city administration’s plans to expand the number of STR permits, which now number 174.
Mayor Jamey Federico said in an argument against the measure that last year, short-term rentals generated between $725,000 and $750,000 annually from the TOT. Properties can be audited anytime to ensure they are paying the tax, he noted.
Mission Viejo voters reject TOT hike
Voters in Mission Viejo rejected raising the transient occupancy tax on hotels and short-term rentals from 8% (the lowest rate in Orange County) to 12% by a vote of 53.13% to 46.87%.
The City Council placed Measure Y on the ballot in hopes of raising more revenue to pay for police services, emergency responders, and infrastructure maintenance, including streets, sidewalks, storm drains, and trails. According to a city press release, the measure was estimated to generate approximately $670,000 per year.
In an argument against the measure, former Mayor Cathy Schmidt argued a 12% TOT was excessive, noting that the average rate in Orange County is 10.4%.
“A 12% tax is such an unreasonably high tax rate that it becomes a deterrent especially to bookings by such groups as visiting sports teams, because they can simply choose a different competing city,” she wrote.
Del Mar voters approve TOT on all STR stays
Del Mar voters overwhelmingly passed Measure M, which levys a 13% transient occupancy tax on stays at all short-term rentals, regardless of size.
The tax previously applied only to stays at hotels, motels, and short-term rentals with three or more units in the coastal city located in San Diego County.
Measure M also allows booking sites like Airbnb and Vrbo to collect the TOT. In contrast, lodging providers are currently required to remit the tax, according to the city attorney’s impartial analysis.
The city estimates extending the TOT to all STR properties will raise an additional $775,000 per year. The tax revenue is used for public safety, emergency services, street, park, and trail maintenance, libraries, and recreation.
The measure passed with 71.96% voting yes and 28.04% voting no.
Measure M does not require California Coastal Commission (CCC) approval and takes effect on Jan. 1, said Sarah Krietor, City of Del Mar Administrative Services Manager, in an email to Rent Responsibly.
Menlo Park passes 15.5% TOT on guest stays
Voters in Menlo Park, San Mateo County, overwhelmingly approved a 3.5% increase in the city’s transient occupancy tax on stays at hotels, motels, and short-term rentals, raising the rate from 12% to 15.5% over a two-year period.
Known as Measure CC, it was approved by 83.71% of the vote, with only 16.29% voting no.
The TOT increase will generate an additional $3.6 million each year. The funds will help maintain city services, including road maintenance, 911 response, emergency preparedness, park programs, and other uses.
The Almanac reported that the City Council placed the measure on the ballot to address the city’s ongoing funding challenges, including a budget deficit for the 2024-25 year.
12% TOT approved in Rancho Cucamonga
Voters in Rancho Cucamonga, San Bernardino County, approved a 2% increase in that city’s transient occupancy tax on hotel and STR stays from 10% to 12%.
Measure Q passed with 57.84% of the vote in favor and 42.16% against.
According to an impartial analysis, the increase will generate about $1 million in annual general fund revenue. The proceeds will go toward public safety, homelessness programs, infrastructure improvements, park maintenance, and programs for seniors and youth.
San Bernardino County voters reject 4% TOT increase
Voters in San Bernardino County rejected a ballot measure to increase the transient occupancy tax on hotel and STR stays from 7% to 11% in unincorporated parts of the county (areas outside of city limits).
Measure K was defeated with 56.77% of the vote. Another 43.23% voted in favor of the measure.
The county Board of Supervisors initiated the proposed increase because the county currently has one of the lowest TOT rates in the region and is missing out on potential revenue, Chief Executive Officer Luke Snoke reported.
Raising the rate to 11% would have yielded about $9.4 million in annual general fund revenue to cover road maintenance, park upkeep, and other activities.
Santa Barbara County voters agree to 2% TOT hike despite high vacancy rate
Voters in Santa Barbara County signed off on Measure H, raising the transient occupancy tax from 12% to 14% on stays at hotels and short-term rentals in unincorporated areas of the county (areas outside city limits).
The increase passed with 66.45% of the vote in support and 33.55% opposed.
The tax will generate approximately $3 million annually and fund 911 communications, gang prevention, road and infrastructure maintenance and repair, groundwater protection, homelessness programs, and other county purposes.
The county collects taxes from 24 hotels and motels and 520 short-term rentals in unincorporated areas.
Opponents of the measure, which included destination marketing organizations and the hotel industry, said the increase would exacerbate the county’s 30% vacancy rate, saying the rate would be the highest on California’s Central Coast, Noozhawk reported.
According to the news outlet, Santa Barbara Supervisor Joan Hartmann said many STR operators are not collecting or reporting TOT to the county, and the city and county plan to bolster enforcement efforts.
Ukiah votes down 3% TOT increase
Voters in Ukiah, Mendocino County, soundly rejected Measure W, which would have raised the transient occupancy tax rate from 10% to 13% on stays at hotels, motels, and short-term rentals.
The measure was defeated with 54.6% of the vote, with another 45.4% in support of the measure.
According to the city website, the rate has not increased since 2006.
The increase would have generated about $420,000 annually for city functions, including public safety, park and greenspace maintenance, destination marketing, downtown beautification, and city youth programs.
Fort Bragg TOT increase sails to victory
Voters in Fort Bragg, Mendocino County, approved a 2% increase in the transient occupancy tax on guest stays of 30 days or less at hotels, motels, and short-term rentals.
Contained in Measure U, the increase brings the TOT rate up from 12% to 14%, effective April 1, 2025.
Nearly 80% of the Fort Bragg electorate voted in favor of the measure, with 20.28% opposing it.
According to an impartial analysis, the increase will generate about $400,000 annually for services that mitigate tourist impacts, keep public spaces, parks, beaches, and bathrooms safe, clean, and litter-free, and support local businesses.
Colorado
Grand County hikes lodging tax
Voters in Grand County, Colorado, approved increasing the county lodging tax from 1.8% to 2%, effective Jan. 1.
Measure 1A passed with about 60% of the vote, with 40% in opposition.
According to Sky-Hi News, the increase will generate an additional $226,000 per year to bring the total lodging tax revenue up to $2.25 million per year. The money goes toward workforce housing and childcare and destination marketing.
Miniturn increase STR tax
Voters in Miniturn voters approved an excise tax of up to 6.5% on short-term rentals to raise revenue for mitigating visitor impacts, public safety, and street and parking improvements.
The measure passed with 73.4% in favor and 26.6% against.
The City Council will set the excise tax amount, but it may not exceed 6.5% under the measure, according to the ballot measure text.
The tax takes effect July 1.
Trinidad doubles lodging tax rate
Voters in Trinidad, on the historic Santa Fe Trail in Las Animas County, approved increasing the excise tax on lodging from 3% to 6%, effective Jan. 1.
The increase, contained in Ballot Issue 2A, was approved with 58.55% of the vote and 42.45% in opposition.
The estimated $550,000 in additional revenue from the tax will go toward city services such as the maintenance and development of parks, trails, and playgrounds, wildfire mitigation efforts, and events to boost tourism to the area.
Missouri
St. Louis voters approve STR fee
Voters approved a 3% fee on short-term rental bookings to raise money for affordable housing.
Proposition S passed with 68% of the vote.
At least half of the proceeds will go toward the Affordable Housing Trust Fund, which helps pay for building and maintaining affordable housing in the city; the rest will fund housing initiatives like eviction prevention, according to St. Louis Public Radio.
The city doesn’t have an accurate count of the number of short-term rentals and has not yet estimated how much funding the fee will generate. The fee took effect Nov. 7.
Wyoming
Pinedale voters approve local lodging tax
Voters in Pinedale, Wyoming, approved a 2% Special Lodging Tax on stays at hotels, motels, RV parks, and short-term rentals.
The local tax will be combined with the statewide lodging tax of 5% for a total of 7% on all stays.
About 66.14% of votes were in favor and 33.85% against the measure.
Revenue from the tax goes toward the promotion of local businesses, events, and destination marketing efforts.
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