Capitola city council seeking increased hotel tax

The Capitola City Council has voted to place an 11 percent visitor services fee – also known as a Transient Occupancy Tax — on the November ballot for voters’ consideration.

Transient occupancy taxes are charged for occupying a room in a hotel, inn, motel or other similar type of lodging for a period of fewer than 31 days.

If approved by the voters, this measure would increase Capitola’s TOT tax rate from 10 percent to 11 percent. Council members say the increase would generate $126,000 for the city’s general fund revenues.

To pass, the measure will require approval from 50 percent of voters.

The deadline for filing arguments with the Capitola City Clerk is Thursday, August 14 at 5 p.m. Rebuttal arguments may be filed with the City Clerk not more than 10 days after the final date for filing direct arguments.