Measure Y
Transient Occupancy Tax
Geared toward out-of-town guests to Mission Viejo hotels and short-term rentals, Measure Y will appear on November ballot
On the November 5 Presidential General Election ballot, Mission Viejo voters will consider an increase to the Transient Occupancy Tax (TOT) charged to out-of-town guests staying at the City’s hotels and short-term rentals. An increase to the TOT, commonly known as a “hotel tax” or “bed tax,” will only be used to fund the City’s police services, emergency response and infrastructure and would bring the City’s low TOT rate in line with other Orange County cities.
Transient Occupancy Tax Ballot Measure Y
Mission Viejo’s current TOT of 8% is the lowest rate in Orange County, and passage of the measure would increase it to 12%. Potential proceeds from the special tax could only be used for payment of police services, funding of emergency response, and maintaining City infrastructure assets as necessary including streets, sidewalks, storm drains and trails. Over the past four years, the Orange County Sheriff’s Department agreement increased by over $4 million. The measure is estimated to generate an additional $670,000 annually, and expenditures would be reviewed by an independent auditor and the results disclosed during the City’s annual audit process.
The City Council conducted a Public Hearing at its July 9 meeting to place the measure before the voters. That action followed a Community Opinion Survey that essentially reflected the community in favor of making the TOT more in line with other Orange County cities and asking out-of-town guests to pay more of a share of security and maintenance costs for the City of Mission Viejo.