Pacifica's Measure M Aims To Raise 'Hotel Tax' By 3%

PACIFICA, CA — Pacifica voters will get the final word on a proposal to increase the city's transient occupancy tax (TOT) to 15 percent.

Often called a hotel tax, TOTs are levied on people staying in hotels and other short-term lodging. Pacifica's current hotel tax rate is 12 percent, and if approved by voters, Measure M would raise the tax by 3 percent.

The City Council unanimously adopted the resolution in July to send to voters in November, noting the tax applies to visitors and tourists who utilize many of the services the tax helps pay for.

An argument in favor of Measure M, co-signed by the general manager of Fairfield Inn and the owner of Florey's Books, shared a similar sentiment, arguing the tax "allows local control over local funding" and is not a tax on residents or property owners.

"As erosion, pollution and flooding increase, we need to protect our beaches, coastline and trails," the argument continues. "Vote YES...to protect these resources for current and future generations to enjoy."

An argument filed against the measure, signed by the general manager of the Anchor Inn and Sea Breeze Motel, argued a higher tax could deter guests and create additional burdens for independent hotel operators and local businesses.

"Raising the TOT will make our city a less competitive destination compared to neighboring areas," the argument reads in part. "This can result in decreased occupancy rates for local hotels and short-term rentals, ultimately reducing the overall revenue these businesses generate."

According to an impartial analysis completed by the City Attorney's Office, a 3 percent increase in the TOT will generate an extra $720,000 in city funds each year.

"Measure M is a general tax, meaning that revenues from the increased TOT go into the city's general fund and could be used for any general governmental purposes of the city, including but not limited to police, fire, 911 emergency response; street/pothole repair; youth/senior programs; adapting to sea-level rise; and keeping trash off beaches," City Attorney Michelle Marchetta Kenyon wrote.

Measure M requires a simple majority to pass. If approved, it will take effect 10 days after the election results are certified.

Voters can learn more about the measure, and others on the ballot across the region, on the county's election website.