The Scotts Valley City Council meeting on May 24, 2025, focused on discussions surrounding potential increases to the transient occupancy tax and its implications for the community. Council members expressed concerns about the impact of raising taxes on residents, particularly those on fixed incomes, such as seniors.

One council member highlighted that while a proposed increase to 12% might seem reasonable, it could exacerbate financial strain on residents already facing rising costs in areas like insurance and housing. The member emphasized the importance of maintaining affordability in the community, especially as efforts to create more affordable housing continue.

Another council member suggested that before making any decisions, it would be prudent to conduct a study on the potential effects of the tax increase. This study would involve engaging with local hoteliers to understand how such changes might impact their businesses and the overall attractiveness of Scotts Valley as a destination compared to nearby areas like Santa Cruz.

The council agreed on the necessity of further examination of the tax proposal, indicating that any decision should be made with careful consideration of community input and the potential economic impacts. The meeting underscored the council's commitment to balancing revenue needs with the financial well-being of residents.