AUBURN, Calif. — People in Auburn will vote on raising the transient occupancy tax by 2% in November.
If Measure F passes, it would increase the sales tax from 8% to 10%, according to a staff report. Raising the tax would increase annual revenue by about $162,000, according to the city of Auburn.
Funds from the sales tax would go toward funding police, fire, street maintenance, pothole repairs, parks and general government use for maintaining other city services, according to a summary of the measure appearing on the November ballot.
Sean Rabé, Auburn City Manager, said at a June 24 meeting one of the issues staff identified was short-term rentals such as Airbnb, VRBO and others don't currently pay the tax at all.
"That one frankly is just a 100% fairness issue," Rabé said.
If passed, this measure would extend to those short-term rentals. He said they had a measure in 2016 and it failed with only 40% voting for it. Rabé said he thinks it failed because the ballot language was too "attorney-speak."
Councilmember Alice Dowdin Calvillo said the city got itself into an issue with its deficit and needs to take cost-cutting measures before asking the electorate to approve an additional tax measure. Dowdin Calvillo said $162,000 is better than nothing but the city is still facing a structural deficit between $500,000 to $800,000 per year.
She said she understands this tax isn't being paid by residents, but they still need to vote on it.
"It puts us in a difficult situation. Because of the timing, I cannot support putting this on the ballot for this election cycle," Dowdin Calvillo said.
Dowdin Calvillo clarified she supports the intent of the tax, but it's the timing she has an issue with.
To pass, it needs the simple majority of voters to approve it. If passed, the measure would be in place until voters end it.
"There's a lot of positives. In my opinion, this is an opportunity that is long overdue," Vice Mayor Sandy Amara said. "I've been advocating this for a long time."
The text for the measure says it's raising the tax to match that of other cities in the county.
Transient Occupancy Tax Rates in Placer County
Here are the rates in Placer County as of July 2024.
- Auburn: 8%
- Colfax: 10%
- Lincoln: 10%
- Loomis: 8%
- Placer County (unincorporated): 8%
- Rocklin: 10%
- Roseville: 10%
The full measure reads:
Measure F (City of Auburn) Requires majority vote to pass Shall the measure funding police, fire, street maintenance, pothole repairs, parks, and for general government use for maintaining other City services by increasing the City's transient occupancy tax (paid only by hotel and lodging guests) on hotel rent by 2% matching nearby city rates, and by extending it to short-term rentals, to last until voters end it, raising approximately $162,000 in additional revenue per year that cannot be taken by the State, be adopted?
Find more information about the tax HERE.
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