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Will the Arroyo Grande City Council move to increase TOT tax?

January 12, 2026

By KAREN VELIE

In an attempt to raise revenue, the Arroyo Grande City Council will consider increasing its Transient Occupancy Tax (TOT) at its meeting on Tuesday.

City staff estimates that a 1% increase in TOT could generate approximately $150,000 to $165,000 annually, while a 2% increase could generate up to $330,000 annually. Several other local jurisdictions have approved TOT increases of 1% to 2% over the past decade.

In addition, a new state law allows cities to enact an ordinance to require short-term rental hosting platforms such as Airbnb and VRBO to provide quarterly booking and revenue reports. The City Council will also consider updating its Municipal Code.

If the City Council votes to increase TOT, it would need to go to a vote of people in 2026 0r 2028. The staff report suggests there is a chance for viability if there is an educational outreach effort.

 


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If a 1% increase is $165,000 and a 2% increase is $330,000, why not 100% for $16.5 million? Right? The tourists are from out of town and the hotel owners are from out of country.


4

And a 1% reduction in the recent budget of $55.7 million would be $557,000 and 2% would be $1,114,000 and city officials want us to believe there is even 1% or 2% of waste and fraud they could cut or even just trim 1% or 2% from city departments?


15

Vote NO on all new taxes. If you can’t figure it out, let’s get someone else who can.


29

Need an investigation into the Travel Paso slush fund


10

City officals have left themselves few other options. They have failed at righting the pending financial disaster ahead, the ice berg has been spotted, and since they can’t dramatically increase property taxes, and they refuse to reduce waste and fraud and cut where needed, so they are left with looking for new sources of income.


34

DemoNcrats knew all along that common core maF could never devisec a real budget. Like us actual taxpayers have to do on the daily with real math.


The answer is to CUT THE FAT in OUR government/admin.


#NEVERVoteDemoNcratAgain


-1

Morro Bay also clearly has no interest in cutting waste, they just hired their new city manager at a roughly $400,000 compensation.


2

Lets do 25%, just think about all the money you’ll have to spend.


-7