Measure AAA
Measure AAA 2026 Ballot Measure
In the upcoming November 2026 General Election, Monterey Park voters will decide on a ballot measure to amend the City’s Transient Occupancy Tax (TOT) from 13% to 14% for standard TOT and from 13% to 16% for Short Term Rentals (STRs). The total estimated additional annual revenue is $600,000. The measure would increase City revenues and provide a more predictable funding source for municipal services and priorities.
Ballot Language For Voters to Consider
Voters will see the following question on their ballot for the November 2026 General Election and be given the option to vote Yes or No:
Shall the ordinance maintaining City of Monterey Park’s services like fire, police, 911 response; keeping public areas safe/clean; helping prevent property crimes/human trafficking in Monterey Park; repairing streets/ potholes; for other city services; by increasing the transient occupancy tax paid only by hotel/motel guests from 13% to 14%, and short-term rental guests, from 13% to 16%, providing approximately $600,000 annually until ended by voters; requiring audits, spending disclosure, local control over all funds, be adopted?
Proposition to Create Additional General-Purpose Revenue for the City
A transient occupancy tax (TOT), sometimes called a “hotel tax,” is a charge added to the bill when visitors stay in hotels, motels, or short-term rentals for 30 days or less. The tax is collected by the lodging business from visitors (not local residents) and then remitted to the City to support general municipal services. The City’s TOT rate is currently set at 13%. It is estimated to generate $4.5 million in fiscal year 2026-2027.
The City proposes an increase to its TOT to generate additional revenue for city services. The proposal would:
- Increase the standard TOT rate from 13% to 14%, generating an additional estimated $400,000 annually.
- Increase the TOT rate for short-term rentals (STRs) from 13% to 16%, generating an additional $200,000 annually.
The total estimated additional annual revenue is $600,000. The measure would increase City revenues and provide a more predictable funding source for municipal services and priorities.
The proposition would amend the City’s existing TOT general tax, meaning that revenue derived from the tax can be used for any municipal purpose. With certain exceptions, a general tax can only be considered during a general municipal election.
The City held five community engagement workshops: at the Women's Club Meeting on June 10, at the Bruggemeyer Library on June 15, at the Langley Center on June 17 and 23, and virtually on June 29.
At the July 1, 2026, City Council meeting, staff presented information regarding the proposed TOT measure, including the purpose of the tax, how it compares with neighboring communities, and the potential fiscal benefits to the City. The presentation also summarized public comments and questions received throughout the community outreach process. The City Council discussed the proposed measure and approved adding the measure to the November 3, 2026, General Election ballot.
What the Measure Is: A ballot measure for the November 3, 2026, General Election asking Monterey Park voters whether to increase the City's Transient Occupancy Tax (TOT), also known as the hotel tax.
What Measure Does: Increases the standard Transient Occupancy Tax from 13% to 14% for hotels, motels, and other lodging businesses, and increases the Transient Occupancy Tax for short-term rentals (STRs) from 13% to 16%.
Who Pays the Tax: The Transient Occupancy Tax is paid by visitors staying in hotels, motels, and short-term rentals for 30 days or less. Lodging operators collect the tax from guests and remit it to the City. Local residents are generally not subject to the tax.
Estimated Revenue: The measure is estimated to generate approximately $600,000 in additional annual revenue, including:
- Approximately $400,000 annually from the standard TOT increase.
- Approximately $200,000 annually from the short-term rental TOT increase.
How Revenue May Be Used: The measure would amend the City's existing general-purpose Transient Occupancy Tax. Revenue may be used for any lawful municipal purpose, including maintaining City services such as police, fire response, parks and recreation programming and infrastructure investments.
Current TOT Revenue: The City's existing 13% Transient Occupancy Tax is projected to generate approximately $4.5 million during Fiscal Year 2026–2027.
Why the Measure Is Proposed: The City is proposing the tax increase to provide a more predictable and sustainable source of local revenue to support municipal services and priorities.
Community Outreach: Prior to placing the measure on the ballot, the City conducted five public outreach workshops in June 2026 and received community feedback through both in-person and virtual meetings.
City Council Action: On July 1, 2026, the Monterey Park City Council reviewed the proposed measure, considered public feedback and fiscal information, and approved placing the measure on the November 3, 2026, General Election ballot.
Where the Measure Will Appear: Monterey Park voters will decide whether to approve or reject the measure during the November 3, 2026, General Election. The City will have a second measure on the ballot addressing land use amendments to create more housing options in major commercial and industrial areas in the city. Learn more about that measure here.
Ballot Measure AAA Informational Presentation
Thursday, September 10, 6:00 - 7:00 pm
Join our virtual meeting to learn more about the AAA Ballot Measure.
Zoom – Remote participation via Zoom app on your smartphone, tablet or web browser at https://us06web.zoom.us/j/85489965775
Telephone – Remote participation by telephone, dial 1(669) 444-9171 or 1(253) 205-0468, enter Meeting ID: 85489965775 and press #.
Budget Engagement Presentation
View the Ballot Measure AAA Informational Presentation Webinar (Recorded September 10, 2026)
1. Why is this measure on the ballot?
The City Council placed this measure on the November 3, 2026, General Election ballot to allow Monterey Park voters to decide whether to increase the City's Transient Occupancy Tax (TOT), also known as a hotel tax. Under California law, changes to a general tax require voter approval at a general municipal election.
2. What is the Transient Occupancy Tax (TOT)?
The Transient Occupancy Tax (TOT), often called a hotel tax, is a tax paid by guests who stay in hotels, motels, and short-term rentals for 30 days or less. Lodging operators collect the tax from visitors and remit it to the City.
3. Who would pay the tax?
The tax is generally paid by visitors staying in hotels, motels, and short-term rentals. Local residents are generally not subject to the tax unless they stay in local lodging for fewer than 30 consecutive days. It is estimated that up to 100% of the tax is paid by non-residents because it is a tax on people staying in our hotels and it is rare that residents in our community are staying in local hotels.
4. What changes would Measure AAA make?
If approved by voters, the measure would:
- Increase the standard Transient Occupancy Tax (TOT) from 13% to 14% for hotels, motels, and similar lodging.
- Increase the Transient Occupancy Tax (TOT) for short-term rentals from 13% to 16%.
5. How much additional revenue is expected?
The measure is estimated to generate approximately $600,000 in additional annual revenue, including:
- About $400,000 from the standard TOT increase.
- About $200,000 from the short-term rental TOT increase.
Actual revenue may vary depending on hotel occupancy and visitor activity.
6. How can the revenue be used?
This is a general tax measure, meaning revenue would be deposited into the City's General Fund and may be used for any lawful municipal purpose through the City's annual budget process.
Examples identified in the ballot question include maintaining:
- 911 emergency response
- Fire protection
- Neighborhood police patrols
- Parks
- Youth, afterschool, and senior programs
- Street and pothole repairs
7. Does the measure dedicate the revenue to a specific program?
No. Because it is a general tax, revenue is not legally restricted to a single purpose. The City Council determines how General Fund revenues are allocated during the annual budget process.
8. Why is the City proposing this measure?
According to City information, the proposed increase is intended to provide a more predictable and sustainable source of local revenue to help fund municipal services and community priorities.
9. How much revenue does the current TOT generate?
The City's current 13% Transient Occupancy Tax (TOT) is projected to generate approximately $4.5 million during Fiscal Year 2026–2027.
10. How does Monterey Park's proposed tax compare to nearby cities?
The City reviewed Transient Occupancy Tax (TOT) rates in neighboring communities as part of its public presentation before placing the measure on the ballot. Residents may review the City Council staff report and presentation materials for additional information.
Ryder's Suggestion: Cities have an array of TOT rates with Pasadena at 17%, Diamond Bar at 14%, and Rosemead at 10%. The City has looked at market conditions and the impact of hotels stay and short term rentals on the community and has recommended this TOT rate adjustment.
11. Why is the proposed Short Term Rental rate higher than the hotel rate?
The City has reviewed our data and is observing consistent issues with compliance and code enforcement challenges related to short term rentals. Additionally, because short term rentals are typically located in residential neighborhoods the City receives more calls for service to address quality of life concerns related to these short term rentals. The increased fees are intended to pay for additional compliance services related to the impacts of the short term rentals.
12. Was the public involved before the measure was placed on the ballot?
Yes. The City conducted five community outreach workshops during June 2026, including both in-person and virtual meetings, to provide information and receive public feedback before the City Council considered the measure.
13. When did the City Council place the measure on the ballot?
The Monterey Park City Council approved placing the measure on the November 3, 2026, General election ballot at its July 1, 2026 meeting.
14. When will voters decide?
Monterey Park voters will decide whether to approve or reject the measure during the November 3, 2026, General Election. Ballots will begin arriving in early October and can be cast through Election day.
15. If approved, when would the new tax take effect?
If approved by voters, the ordinance would become effective according to the implementation timeline established in the measure and applicable California Law. The City would notify lodging operators of the effective date and any administrative requirements.
16. Does this tax apply to stays longer than 30 days?
No. The Transient Occupancy Tax (TOT) generally applies only to stays of 30 consecutive days or less, consistent with the City's existing ordinance. Therefore it does not apply to traditional long term renters.
17. Does the measure increase taxes on Monterey Park residents?
The measure proposes increasing the Transient Occupancy Tax (TOT) paid on short-term lodging stays. It does not increase property tax, sales tax, or utility taxes. It is estimated that up to 100% of the people staying in hotels and short term rentals in Monterey Park are non-residents.
18. Do visitors to Monterey Park demand services?
Yes. Monterey Park provides policing, fire response, streets and other amenities to visitors to our community. Hotel taxes, such as the Transient Occupancy Tax (TOT), proposed by this measure are commonly deployed by cities throughout California to help offset the cost of services provided to make the visitor experience safe and positive.