El Dorado County may take 2% TOT hike to the voters

Revenue will need to increase in El Dorado County in order to complete a list of needed projects including those for repaired roads and economic development, both items that are affected by tourism.

The El Dorado County Board o Supervisors will start the discussion at the their next meeting on March 13 to the possibility of taking a tax increase to the voters in 2018, one the voters will benefit from but won't have to pay for.

A Transient Occupancy Tax (TOT) is collected by lodging properties, including short-term rentals, and the current rate in El Dorado County is 10 percent. County staff estimates an increase of two percent, to 12 percent TOT, will result in an additional $734,190 a year. This is based on the 2016-17 tax year when the County collected $3,670,952.

In 2016, voters in the City of South Lake Tahoe approved a two percent increase in the TOT to get income to build a new recreational complex. The tourist core area lodging properties collect 14 percent TOT, non tourist core is 12 percent. That measure (P) passed by a measure of 68.70 percent to 31.30 percent. The other City in the county, Placerville, has a 10 percent TOT.

The County is also considering expanding their collection of TOT to campgrounds and recreational areas, just as South Lake Tahoe does, gathering an extra $313,104 annually.

This is just the start of the discussion," said Supervisor Sue Novasel. "See what the appetite is for an increase."

If staff is directed by the Supervisors to start developing a ballot measure for the increase they will most likely aim to get it on the November ballot to avoid the cost of a special election. Draft ballot measure language would have to come back to the board for conceptual approval by June to get on the ballot.

In 2016 there were 23 TOT measures on ballots in California. Fourteen of the measures were approved. The measures that passed had an average increase of 2.89 percent.