11 ATTACHMENT 1, EXHIBIT A - Laserfiche WebLink

D - 3 City of Pleasanton Operating Budget • FY 2023/24 - FY 2024/25 APPENDIX D Hotel/Motel Tax The City currently has thirteen hotels/motels with a total of 1,823 rooms. The City imposes a Transient Occupancy Tax (Hotel/Motel Tax) of 8.0 percent on room rates for stays of 30 days or less. The tax was last raised in 1983, from 5.0 percent to 8.0 percent. The proceeds from this tax currently represent approximately 2.9 percent of the total General Fund revenue. Revenues in this category depends considerably on business travel and therefore, hotel/motel tax revenues were significantly impacted by the COVID-19 pandemic. Hotel/motel tax revenues decreased to $4.8 million in FY 2019/20 and $2.0 million in FY 2020/21 from $6.5 million in FY 2018/19. There have been improvements in FY 2021/22 and FY 2022/23, but revenues are still significantly lower than the pre-pandemic level. FY 2023/24 and FY 2024/25 hotel/motel tax revenues are projected at $4.3 million and $4.7 million. Two new hotels are expected to open in FY 2023/24. Partial year revenue is included in FY 2023/24, and full year of revenue is included in FY 2024/25. * Projected Business License Tax The City imposes a license tax on businesses that conduct activities in the City, whether have a physical location here or not. The license tax is based on gross receipts at a rate of 30 cents per $1,000 (3/100 of one percent), subject to certain minimums. The rate has not changed since 1983. There were no significant changes to business license tax revenues during the COVID-19 pandemic. Revenues are projected at $5.0 million for FY 2023/24 and $5.1 million for FY 2024/25, a 2.0 percent increase from year one.