Measure B: Transient Occupancy Tax
City of Gilroy · Santa Clara County · November 3, 2026
The question on your ballot
To maintain critical City services such as street/pothole repair, park and recreation programs, emergency preparedness for storms, flooding and wildfires, and police and fire response shall the City of Gilroy measure raising the Transient Occupancy Tax (hotel tax) rate from 9% to a maximum of 13%, set by Council resolution, providing $700,000 annually paid only by hotel/lodging guests, with annual independent audits, that cannot be taken by Sacramento, until ended by voters, be adopted?
In plain language
Measure B is a Gilroy city measure. It is about the hotel tax. This tax is called the Transient Occupancy Tax. A YES vote raises the tax from 9%. It could go up to 13%. The City Council would set the exact rate later. Only hotel and lodging guests pay this tax. Residents do not pay it. The money would help pay for street and pothole repair. It would also fund parks and recreation. It would fund emergency preparedness too. And it would fund police and fire response. The money must be audited every year. A NO vote keeps the hotel tax at 9%.
Fiscal impact
The tax rate would rise from 9% to at most 13%. It would raise about $700,000 each year. Only hotel and lodging guests pay it. It lasts until voters end it.
Impartial analysis
CITY ATTORNEY’S IMPARTIAL ANALYSIS OF MEASURE B The City Council of Gilroy is placing Measure B on the November 2026 ballot to increase the maximum Transient Occupancy Tax rate to 13% until ended by the voters. The Transient Occupancy Tax, commonly referred to as the “Hotel Tax,” is imposed on persons staying in hotels, short-term rentals, or other lodging for a period of 30 days or less. If approved by voters, Measure B amends the Hotel Tax Ordinance set forth in Chapter 25A.2 of the Gilroy City Code to initially increase the Hotel Tax rate by 2% from the current rate of 9% to 11%. In addition, Measure B amends the Hotel Tax Ordinance to provide that the City Council may by resolution adjust the rate of the Hotel Tax upwards or downwards without a vote of the people provided that the rate does not exceed 13%. Monies received from the Hotel Tax are deposited into the City of Gilroy general fund and may be used for any lawful purpose. City services funded could include, for example, street/pothole repairs, park and recreation programs, emergency preparedness for storms, flooding and wildfires, and police and fire response, among other things. A “Yes” vote is a vote in favor of Measure B. A “No” vote is a vote against Measure B. The Measure will be approved if it receives a simple majority of “Yes” votes. s/Andrew L. Faber City Attorney City of Gilroy The above statement is an impartial analysis of Measure B. If you desire a copy of the measure or ordinance, please call the City Clerk's office at [phone number omitted] and a copy will be mailed at no cost to you.
Official ballot arguments
Filed for the official voter guide by each side, printed as submitted.
The official arguments will appear here once both sides’ arguments are on file.
What supporters and opponents say — outside sources (not official ballot arguments)
Statements by campaigns, officials and news coverage, quoted with attribution and linked to the original. VoterDecoder did not write them and does not endorse either side.
Supporters say
No public statements in favor were found.
Opponents say
“The Gilroy City Council wants voters to approve a huge, 31 PERCENT tax hike by saying that we, the residents, won't have to pay it.”
— Silicon Valley Taxpayers Association, City of Gilroy (official ballot argument) (2026) · Argument Against Measure BRead the source →