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A proposed hotel tax increase that Pleasanton officials say will generate much-needed funding for city services is on track to pass, according to initial results from the Alameda County Registrar of Voters.
Measure HH had about 61% voter support, or 10,057 votes, as of early Wednesday morning, the last time the county updated its ballot counts. The initial returns showed about 39.1% of voters opposing the tax, or 6,463 votes. The ballot measure needs a simple majority vote of 50%+1 to pass. An updated count is expected from the Registrar of Voters on Friday (Nov. 6).
If approved, the city’s hotel tax rate would increase from 8% to 10% starting July 2027. An additional increase from 10% to 12% would take effect the following year.
The full increase is expected to generate up to $2.8 million annually to fund general municipal services, including police and fire protection, park and street maintenance and recreation programs.
Pleasanton City Manager Joe Calabrigo on Wednesday said he was encouraged by the early support from the community, though he noted the city is waiting for the final vote count.
“Thank you to everyone in Pleasanton who took the time to vote,” Calabrigo said in a statement to the Weekly. “The measure will help address the city’s budget deficit and support city services and programs.”
Pleasanton Mayor Jack Balch, who is posed to win reelection, on Thursday said he was also encouraged by the initial tallies, adding that he was grateful that residents recognized the “importance of Pleasanton’s long-term financial health.”
“This measure, if passed, helps strengthen our financial foundation and support essential city services, with additional revenue coming primarily from visitors staying in our hotels,” Balch said. “While ballots are still being counted, I appreciate the community’s support and remain committed to fiscal discipline and responsible stewardship of taxpayer dollars.”
The City Council voted to place Measure HH on this year’s ballot after voters in 2024 rejected Measure PP, a half-cent sales tax increase that officials said would have generated about $10 million annually for the city’s general fund. Following Measure PP’s defeat at the ballot box, the city closely examined its budget, reducing certain services and making cuts across departments.
Staff then began looking at other ways for the city to generate additional revenue to help address a projected structural deficit over the next few years and eventually recommended a hotel tax increase.
Some council members said they were conflicted about the proposed phased approach to the increase and had concerns about how much less revenue the measure would generate compared to Measure PP. However, Measure HH was ultimately approved for the ballot by a unanimous vote, with council members noting the tax burden would not fall on residents.
“The City Council unanimously voted to place the measure on the ballot so voters could decide, and we’re grateful to residents for staying engaged,” Calabrigo said.
Aside from a couple ballot arguments filed against the tax measure that argued the tax will be felt by family and friends who visit Pleasanton residents, there has not been much public opposition to the measure. As of Thursday, no groups had reported raising money to fight the tax increase.
Campaign finance reports show that one committee called the Friends of Pleasanton – Yes on Measure HH has raised nearly $6,900 so far this year in support of the increase.
Those reports, submitted to the California Fair Political Practices Commission, show Balch is the group’s major donor, contributing $6,100 toward the campaign this year.
