The City Council voted to direct staff to pursue a comprehensive review and analysis of two possible ballot measures for November 2026: an increase to the transient-occupancy tax (TOT) and revisions to the city’s business-license tax.

Staff told council that each one percentage point of TOT produces about $1 million in revenue and that the city’s TOT rate (8%) trails several nearby jurisdictions. The business-license tax, which is based on gross receipts and ranges from a $25 minimum to $200 maximum under the current structure, has not been substantially updated since 1985; staff said changes could be structured to protect small businesses and be phased in.

Council debate emphasized equity and competitiveness considerations. Some council members urged caution about business-license changes that could burden local employers, while others argued the tax is overdue for updating and would help restore fiscal balance. FIPAC recommended staff work with consultants to analyze both options and to engage the business community and stakeholders in designing proposals.

Council voted to proceed with the staff-led study and public engagement to identify specific structures, revenue estimates and draft ballot language; staff noted an August deadline for final placement material to the registrar of voters if measures are to appear on the November 2026 ballot.