Auburn residents are set to voice their opinions at the polls come November on whether to hike the transient occupancy tax (TOT) by 2%. According to a report by ABC10, if Measure F is given the green light, it would see an increase in the current tax from 8% to 10%, potentially boosting the city's coffers by about $162,000 annually. The additional funds from this increase are earmarked for essentials such as funding the police, fire services, street maintenance, park improvements, and a host of other general government uses.
City Manager Sean Rabé pointed out the uneven playing field, as "short-term rentals such as Airbnb, VRBO and others don't currently pay the tax at all." In a meeting last month, as detailed by Gold Country Media, Rabé stated this was "just a 100% fairness issue." Measure F aims to, furthermore, extend the tax to these short-term rentals. The 2016 attempt at a similar measure failed to pass, and Rabé believes it was due in part to the complex legal jargon used in the ballot language.
During the City Council voting on Monday night, Councilwoman Alice Dowdin Calvillo was the single opposing voice. While she supports the tax in principle, she harbours concerns about the timing relative to the city's current deficit. "It puts us in a difficult situation," Dowdin Calvillo told ABC10. On the other hand, Vice Mayor Sandy Amara was in favor, calling it "an opportunity that is long overdue" and expressing a view that the tax adjustment is something she had been advocating for a significant period.
In Placer County, Auburn's current TOT sits at 8%, identical to Loomis and the unincorporated areas while trailing behind Colfax, Lincoln, Rocklin, and Roseville, all of which have a TOT of 10%. This move would bring Auburn in line with the rates of its county neighbors. According to the ballot measure language, the raised tax is slated "to last until voters end it," suggesting a measure of permanence subject only to future voter intervention. Auburn has until July 3 to submit the final ballot language to the Placer County Elections Office and the inclusion in November's ballot comes at a cost of $15,000, as per Gold Country Media.
Auburn's step towards amending its TOT is seen as part of larger efforts by city officials to mend a structural deficit borne from previous over-estimations of city financial projections. Despite Dowdin Calvillo's dissent and call for cost-cutting measures to be assessed beforehand, the consensus amongst the council members—and Mayor Rachel Radell-Harris—seems to lean heavily toward pushing forward with the vote. "Auburn has a history of being risk averse and leaving money on the table," Radell-Harris said according to Gold Country Media, affirming a need to act with a sense of urgency in diversifying the city's revenue streams.
