Rocklin Measure F: Transient Occupancy Tax FAQS

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Transient rate unchanged in Rocklin since 1985

ROCKLIN, CA – The City of Rocklin has put together an FAQ page on this year’s polling scale. The slight increase has not changed in nearly 40 years, and a small increase will help Rocklin more closely align Rocklin with many other California destinations.

The November 8, 2022 general election will have a measure on the ballot to increase the transit occupancy tax (TOT) rate and change the definition of companies that will pool training of trainers. Below is information about the “and” poll procedure. To view the action and proposed amendment to Chapter 5.24 of the City of Rocklin Municipal Code, view Resolution No. 152-2022.

What is a transitory employment tax, or TOT?
  • This tax is paid only by people, especially visitors, who rent a hotel room or short-term rental, for a stay of 30 consecutive days or less. It is not paid by the property owner. Currently, a hotel is defined in Rocklin local law as “any structure or any part of any building occupied, intended or designed for occupancy by transients for the purposes of lodging, lodging, or sleeping, and includes any hotel, inn, or tourist home, home, motel, studio hotel, hotel celibate, residence home, rooming house, apartment house, dormitory, public or private club, mobile home or mobile home on a fixed site or other similar structure.” According to the California State Controller’s website, most US cities currently levy this tax, including 419 cities in California.
What is the whole difference from hotel and accommodation tax?
  • These generally refer to the same thing. Some jurisdictions call their taxes a hotel and lodging tax rather than a transit occupancy tax.
Who pays the coaches’ fees?
  • Persons staying in hotels, short-term rentals, or any other facility listed above within the city limits of Rocklin.
Does TOT apply to renters?
  • No, TOT only applies to people who have been in short-term housing for less than 30 days.
What is the current tax and what is it proposing?
  • Rocklin’s CTO is currently 8% and has been unchanged since 1985 when it was first created. Action F proposes a 2% increase in the rent charged for a hotel room or short-term rent, and extending the definition of “hotel” to include camp facilities.
What is an example of an increase in the cost of a hotel in Rocklin?
  • If you’re staying at a hotel in Rocklin and pay the $100 room rate, the 2% increase would equal about $2. The total tax will be 10% of the room rate, or $10 total.
How does this compare with our neighboring cities?
  • Roseville Colfax also has initiatives on the ballot to increase training of trainers to 10%. Lincoln and Yuba have a training of trainers rate of 10%. Train-the-trainer rates in West Sacramento, Elk Grove, and Rancho Cordova are 12%. Placer, Loomis, and Auburn County unincorporated TTO is 8%.
How much additional funding will be raised?
  • An increase of 2% would amount to approximately $300,000 in funding annually.
How will the additional funding be used?
  • The City may use the Train the Trainer revenue for any unrestricted general municipal purpose, including, but not limited to, police response, emergency medical/fire service, street/road repair, park maintenance, and other general government services.
Can the state charge tax revenue?
  • No, the TTO that is created in the city of Rocklin remains in Rocklin and cannot be taken by the state of California or the federal government.
How is the F effect measured for camping in Rocklin?
  • There are currently no public or private camping areas within the city limits of Rocklin. However, the city has had inquiries over the past few years from potential private campground developers who would like to offer overnight accommodations to RV and Trailer users or create a “Glamping” (“Glamour Camping”) amenity in the city. By expanding the definition of “hotel,” if a campground is set up in Rocklin, that overnight stay would be subject to the same coach tax charged by users of city hotels and other short-term rentals to ensure that the public services used were paid for those guests.

Partial analysis by city attorney

Rocklin City – F . measurement
Transit Occupancy Tax – Rocklin Municipal Code Amendment Chapter 5.24

This action contains a proposed amendment to Chapter 5.24 of the City of Rocklin Code regarding the Trans-City Occupancy Tax (TOT). The measure will increase the Trans-City Occupancy Tax (TOT) from eight (8) per cent to ten (10) per cent and extend its application to campgrounds. TOT is a tax levied on guests of hotels and similar short-term accommodations, who stay for 30 days or less. Hotel operators collect the tax when guests pay for their accommodations and then remit the tax to the city.

Rocklin City – F . measurement
Transit Occupancy Tax – Rocklin Municipal Code Amendment Chapter 5.24

This action contains a proposed amendment to Chapter 5.24 of the City of Rocklin Code regarding the Trans-City Occupancy Tax (TOT). The measure will increase the Trans-City Occupancy Tax (TOT) from eight (8) per cent to ten (10) per cent and extend its application to campgrounds. TOT is a tax levied on guests of hotels and similar short-term accommodations, who stay for 30 days or less. Hotel operators collect the tax when guests pay for their accommodations and then remit the tax to the city.

TOT is a general tax, which means that additional revenue generated from increased training of trainers will be deposited into the city’s general fund and can be used for any unrestricted general government purpose, including but not limited to police and fire services and street and park maintenance. The city’s financial analysis estimates that $1.1 million in train-the-trainer revenue was generated during fiscal year 2021/2022, with the potential to generate an additional $300,000 annually if the TOT rate is increased to ten (10) percent.

A “yes” vote increases the city of Rocklin’s transit occupancy tax rate from eight (8) to ten (10) percent and extends its application to campgrounds.

A “no” vote does not increase Rocklin’s transit occupancy tax rate or extend its application to campgrounds, and the city will continue to collect the tax at its current rate.

The measure required a simple majority vote to approve it, and was placed on the ballot by the Rocklin City Council.

This statement is an impartial analysis of a procedure prepared pursuant to California Elections Code Section 9280. If you would like a copy of the procedure, please call the City Clerk’s office at (916) 625-5560, and a copy will be mailed free of charge to you.

* To obtain copies of pleadings or statements of rebuttal for the proceeding and, please call the city clerk’s office at (916) 625-5560.

A look at California’s temporary occupancy tax

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