DATE: February 10, 2026
TO: Board of Supervisors
SUBMITTED BY: Paul Nerland, County Administrative Officer
SUBJECT: Discussion and Direction Regarding Implementation of a Transient Occupancy Tax in the Unincorporated Areas of the County
RECOMMENDED ACTION(S):
TITLE
Discuss the potential implementation of a Transient Occupancy Tax (TOT) in the unincorporated areas of the County and provide direction to staff regarding preparation of an ordinance, public outreach, and any required actions to place the measure before voters in November 2026, if applicable.
REPORT
The item is intended to inform Board discussion and receive direction regarding whether and/or when staff should proceed with ordinance development and related next steps. This item does not establish a tax, approve an ordinance, or commit the County to placing a measure before voters. This item is Countywide.
ALTERNATIVE ACTION(S):
Your Board may take no action at this time, return at a later date, or direct staff to take no further steps related to implementation of a TOT.
FISCAL IMPACT:
There is currently no direct fiscal impact associated with discussing and providing direction to staff. If your Board directs staff to proceed, future agenda items would return with estimated revenue projections, administrative costs, and options regarding rate structure and potential use of revenues.
DISCUSSION:
A TOT is a tax imposed on short-term lodging, typically paid by visitors staying in hotels, motels, tourist homes, and short-term vacation rentals for periods of 30 days or less. TOT revenues are a common local funding source among California counties and are used to support general governmental services. The tax does not apply to County residents in their primary or long-term residence.
According to the California State Controller’s most current report, the County of Fresno is one of three counties that do not levy a TOT. As a result, the cost of County services generated by visitor activity in the unincorporated areas of Fresno county is borne by local taxpayers.
If your Board directs staff to proceed, staff will continue conducting preliminary analysis and work with the County’s consultant, HdL Companies, to develop high-level revenue and administrative cost estimates. Subsequent steps will then include preparation of ordinance language, required public hearings, and coordination with the Registrar of Voters to meet statutory election deadlines for the November 3, 2026, gubernatorial election. Direction to proceed at this stage simply allows the matter to be placed before voters for consideration and does not constitute approval of a tax.
CAO ANALYST:
Paige Benavides