The City of Scotts Valley has placed Measure G on the November ballot. If passed, Measure G would increase the City’s Transient Occupancy Tax (TOT)—commonly known as the hotel tax—by 2%, adding just $2 per $100 spent on a hotel stay.
With this approach, the City avoids additional taxes for our local residents. Instead, a small contribution from visitors helps fund city infrastructure that they use, like roads, parks and public safety.
To further understand why this is necessary, I’d like to share a brief look back at Scotts Valley’s financial history.
When Scotts Valley incorporated in 1966, it did so with a promise of no new taxes. At that time, the City received only 3.5% of local property tax revenue, while surrounding cities and the County received significantly more (the current statewide average is 11.3%). When Proposition 13 passed in 1978, it permanently locked the City into that lower property tax baseline.
Years later, the City discovered it was not receiving its proper share of local property taxes from Santa Cruz County, which should have been closer to 7%. Scotts Valley spent eight years in court fighting for its rightful share. The courts ultimately ruled in our favor, a decision upheld in 2012. While Scotts Valley’s share increased to 6.5%, it remains far below the state average. Furthermore, due to statute of limitations rules, the City could only recover lost funds from the three years prior.
In 2020, our community generously approved a 3/4-cent sales tax measure—a vital step for our city. However, the pandemic hit just two weeks later, severely impacting our finances and leading to major staffing losses across all departments. We lost 40% of our Police Department staff and had to eliminate the entire Parks and Recreation Department.
Since then, the City has worked tirelessly to rebuild. I am proud to share that Scotts Valley finally reached full staffing this past year! Our Parks and Recreation Department is back up and running—offering new programs and securing grant funding for park improvements—and we have resumed long-overdue projects like road repairs. However, ongoing State and Federal funding cuts still require us to draw from our financial reserves.
Measure G raises the hotel tax from 11% to 13%, generating an estimated $300,000 to $400,000 annually for the City’s General Fund starting in 2027. This brings Scotts Valley closer to neighboring Santa Cruz County cities—which already charge around 12%—while ensuring our local hotels remain highly competitive.
Prior to placing Measure G on the ballot, City staff reached out to local lodging business representatives to make them aware of the proposal and hear their feedback. That feedback was mixed, with some expressing an understanding of the City’s needs and others raising concerns about the potential impacts of increasing the TOT (Transient Occupancy Tax). Even with this increase, our hotel rates remain a better bargain compared to other hotels in the area.
Rising costs for staffing, public safety, roads and infrastructure continue to outpace existing revenue. Measure G offers a sustainable solution: it is paid entirely by visitors who use our streets, parks and police services—not by local residents. Every dollar raised stays local and cannot be taken away by the State or County.
Vote Yes on Measure G to help protect our parks, roads and public safety!
Donna Lind is Mayor of Scotts Valley. To reach Lind, email dl***@**********ey.gov or call 831-438-4187.
