GOLETA, Calif. - Come November people living in Goleta will vote on a tax-rate increase for people who stay at local hotels.
The Goleta Valley Chamber of Commerce is supporting Measure H, an increase in the transient occupancy tax.
If it's approved, there will be a 2 percent increase from 10 to 12 percent. That will raise nearly an additional $900,000 yearly.
It's the first city sponsored initiative on the November ballot.
Lompoc tried increasing their TOT a couple years ago by 2 percent, but ultimately the city chose not to put it on the ballot.
A hotel general manager in Lompoc said while cities can gain more revenue by raising the tax rate, businesses are forced to increase their prices.
"Raising the taxes means we have to raise our rates, which a lot of people in this area don't want to pay them or can't afford to pay them"
Like most other taxes, the transient occupancy tax typically goes to the city general fund. Goleta's Measure H will go to street repairs and revitalizing old town and parks.
