(PLACERVILLE, CA) – The El Dorado County Board of Supervisors yesterday provided direction to the Chief Administrative Office specific to Transient Occupancy Tax (TOT) revenues in developing the 2022-23 Recommended Budget which will come before the Board for approval June 6th, 2022. These revenues, commonly referred to as a hotel/motel tax, fund the impacts of tourism, economic development, and are used in support of tourism and promotion activities and veterans programs.
“The County is in a unique position of having a considerable amount of unspent TOT revenue from the current budget year,” said Board chair, Lori Parlin. “As a result, even with an eye toward the increase in inflation and interest rates which may result in an economic downturn, the Board is pleased to make significant allocations to our Fire District partners throughout the County and the Tahoe Transportation District which is impacted by the influx of 20 million visitors annually.”
Historically, TOT revenue has increased from $2M to $8M in the last six years. Approximately 78% of TOT revenue comes from the Tahoe area and 22% from the West Slope. The CAO projects $8.25M and $5.9M fund balance (unspent allocations and revenue in excess of funds from 2021-22) providing a total of $14M for allocation for 2022-23.
The Board agreed to meet the prior year’s commitment of $6.4M and directed the remaining $7.6M to fulfill requests entities including:
“This direction appropriately allows for 55 percent of the TOT revenue to be allocated to our partners and County operations in the Tahoe area which historically is responsible for the vast majority of tourism in El Dorado County,” said Parlin. “Of the remaining funds, 30 percent will be provided to County departments and entities throughout the County, and 14 percent specifically to the West Slope to help offset the increasing impact of tourism to our County.”
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