Measure A:  A measure to amend the San José Municipal Code to increase the City’s General Fund portion of the Transient Occupancy (hotel) Tax from 4% to 6%, with the following statement of the measure to be printed in the ballot:

To fund essential city services including police and fire emergency response; address homeless encampments impacting parks, neighborhoods, and waterways; remove trash, illegal dumping, and graffiti; and maintain trails, playgrounds, recreational facilities, and park restrooms, shall an ordinance be adopted increasing the general fund transient occupancy (hotel) tax from 4% to 6%, generating approximately $10 million annually, and paid by hotel/motel guests, until repealed by voters?

Full Text

BE IT ORDAINED BY THE PEOPLE OF THE CITY OF SAN JOSE:

SECTION 1.

Section 4.74.050 of Chapter 4.74 of Title 4 of the San José Municipal Code is hereby amended to read as follows: 4.74.050 Imposition and Payment of Tax For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the amount of four (4%) percent six percent (6%) of the rent charged by the operator. Said tax constitutes a debt owed by the transient to the City which is extinguished only by payment to the operator or to the City. The transient shall pay the tax to the operator of the hotel at the time the rent is paid. If the rent is paid in installments, a proportionate share of the tax shall be paid with each installment. The unpaid tax shall be due upon the transient's ceasing occupancy in the hotel. If for any reason the tax due is not paid to the operator of the hotel, the Director of Finance may require that such tax shall be paid directly to the Director of Finance.

SECTION 2. A new section is added to Chapter 4.74 of Title 4 of the San José Municipal Code, to be numbered, entitled, and to read as follows: 4.74.155 Amendment Chapter XIIIC of the California Constitution requires voter approval for any amendment that would increase the rate of any tax levied under this Chapter 4.74 of the San José Municipal Code. The People of the City of San José affirm that the City Council may amend this Chapter to take the following actions because these actions shall not be an increase of the rate of a tax subject to voter approval:

A. The restoration of the rate of the tax to a rate that is no higher than that set by this Chapter, if the City Council has acted to reduce the rate of the tax;

B. An action that interprets or clarifies the methodology of the tax, or any definition applicable to the tax, so long as interpretation or clarification (even if contrary to some prior interpretation or clarification) is not inconsistent with the language of this Chapter;

C. The establishment of a class of person that is exempt or excepted from the tax or the discontinuation of any such exemption or exception (other than the discontinuation of an exemption or exception specifically set forth in this Chapter); or

D. The collection of the tax imposed by this Chapter, even if the City had, for some period of time, failed to collect the tax.

SECTION 3. This Ordinance shall be considered adopted upon the date that the City Council certifies the results of the election, and shall go into effect on October 1, 2026.

SECTION 4. Should any provision of this Ordinance or its application to any person or circumstance be determined by a court of competent jurisdiction to be unlawful, unenforceable or otherwise void, that determination shall have no effect on any other provision of this Ordinance or the application of this Ordinance to any other person or circumstance and, to that end, the provisions hereof are severable.

 Arguments, Impartial Analysis, and Resolution

•  Argument in Favor
  • Rebuttals will not be accepted as only one argument in support was filed and none in opposition.
• Impartial Analysis by City Attorney
• Resolution No. Res2026-33 --A Resolution of the Council of the City of San Jose Calling and Giving Notice of, on Its Own Motion, the Submission to the Electors of the City of San Jose at A Special Municipal Election to Be Consolidated With the Statewide Direct Primary Election On June 2, 2026, A Ballot Measure Proposal to Amend Section 4.74.050 and Add Section 4.74.155 to Chapter 4.74 of Title 4 of the San Jose Municipal Code to Increase the General Fund Portion of the Transient Occupancy (Hotel) Tax from Four Percent (4%) to Six Percent (6%)