Measure B on Gilroy's Nov. 3, 2026 ballot asks voters whether to raise the city's transient occupancy tax — the hotel tax paid by guests staying 30 days or less — from 9% to a maximum of 13%. The ballot question says the change would provide about $700,000 annually, paid only by hotel and lodging guests, with annual independent audits. It needs a simple majority.

Compare other South Bay measures on our Bay Area Election 2026 hub, including Sunnyvale Measure G, Mountain View Measure F and Milpitas Measure K.

What a yes or no vote means

A yes vote amends Gilroy City Code Chapter 25A so the council can set the hotel tax as high as 13%. A no vote leaves the rate at 9%, where it has been since 1983, according to the ordinance text in the city's resolution.

California Choices, summarizing the impartial analysis, says that if Measure B passes the rate would initially rise to 11% on Jan. 1, 2027. After that, the City Council could raise or lower the rate by resolution without another election, as long as it stays at or below 13%. Any council rate change would take effect no sooner than 60 days after adoption, the ordinance text says. If no council resolution is in effect, the rate defaults to 11%.

Who pays and where the money goes

The tax applies to guests in hotels, motels and short-term rentals for stays of 30 consecutive days or less. Gilroy residents do not pay it when they are not lodging guests. Revenue goes into the city's general fund and can be used for any lawful municipal purpose. The ballot language lists examples such as street and pothole repair, park and recreation programs, emergency preparedness for storms, flooding and wildfires, and police and fire response.

The city's Resolution 2026-30, adopted May 4, 2026, placed the measure on the ballot. The council vote was 6-1, with Councilmember Bracco dissenting and Mayor Greg Bozzo and councilmembers Cline, Fugazzi, Hilton, Marques and Ramirez in favor, according to the resolution.

Arguments for and against

Supporters, in the California Choices summary of the argument in favor, say Measure B updates a tax paid only by visitors who use Gilroy streets, parks and public-safety services, and that it supports essential services without raising taxes on residents.

Opponents call it a large permanent tax hike on visitors — about a 31% jump from 9% to the 13% ceiling — and argue it could discourage business and leisure travel. Primary arguments against were filed with the county; no primary argument in favor appears on the registrar's measure list as of the posted filing notes, but California Choices reprints a pro statement drawn from campaign materials.

How to vote

Vote-by-mail ballots for the Nov. 3 election are already out. Gilroy Unified also has school bond Measure M on some local ballots. For the regional transit sales tax affecting Santa Clara County, see our Measure RTM explainer.