The ballot measure needs a simple majority to pass and would take effect Oct. 1 if approved.<\/p>\n
San Jose officials project the\u00a0transient occupancy tax increase would generate roughly $10 million in additional revenue each year. The money would go to the city\u2019s general fund, leaving it up to future City Council deliberations to determine how it will be spent.<\/p>\n
Measure A\u2019s commanding lead in early returns has come as a relief to city leaders<\/a> who have warned the measure\u2019s failure would deal a major blow to San Jose\u2019s budget priorities, as it seeks to balance a $50 million deficit<\/a> for the coming fiscal year starting July 1.\u00a0Councilmembers are expected to vote on a final budget on June 9.<\/p>\n \u201cNo question \u2014 Measure A\u2019s passage is a major win for San Jose, protecting our ability to invest in a safe, clean and vibrant city,\u201d District 6 Councilmember Michael Mulcahy told San Jos\u00e9 Spotlight. \u201cWithout it, we would have faced painful cuts to core services.\u201d<\/p>\n The cash infusion from the tax hike would provide a crucial financial buffer for the city. Under a draft budget plan released in May, San Jose is already facing about $19 million in cuts to city services.\u00a0But that budget relies on the projected Measure A funds. Without them, budget officials have warned<\/a> the city would be forced to eliminate the equivalent of an additional 50 full-time positions, with some of the deepest cuts landing on public safety programs and the library system<\/a>.<\/p>\n \u201cI think that Measure A passed because of the city unions who put in the resources to educate voters about what was at risk if we don\u2019t have more general fund investments to protect core city services,\u201d Jean Cohen, executive officer of the South Bay Labor Council, which endorsed the measure, told San Jos\u00e9 Spotlight.<\/p>\n Meanwhile, opponents of Measure A have argued that adding any more taxes to the city\u2019s already struggling tourism industry would make the sector less competitive, further weakening the local economy.<\/p>\n Silicon Valley Taxpayers Association President Mark Hinkle, a vocal critic of Measure A, also objects to the fact that the measure seeks to generate tax revenue from non-residents, who never had the opportunity to weigh in on the policy.<\/p>\n \u201cIt\u2019s kind of sad,\u201d Hinkle told San Jos\u00e9 Spotlight. \u201cThe voters basically said, \u2018Hey, let\u2019s tax somebody else, not me.’\u201d<\/p>\n San Jos\u00e9 Spotlight reached out to several local hotels, but no representatives were immediately available for comment.<\/p>\n Backers<\/a> of the proposed hotel tax \u2014 which include Mayor Matt Mahan<\/a>, the Santa Clara County Democratic Party and San Jose Chamber of Commerce \u2014 have pointed out that even at 12%, San Jose\u2019s levy would still remain below levels imposed in other major cities. San Francisco and Oakland have set their hotel taxes at 14%, according to a city memo.<\/p>\n However, San Jose hotels also face a number of fees that substantially increase their effective tax rate.<\/p>\n Santa Clara County Democratic Party Chair Bill James said he\u2019s glad to see Measure A on course for victory.<\/p>\n \u201cVisitors use and benefit from city services, and the modest increase in the hotel tax will keep San Jose competitive with other big cities in the area,\u201d James told San Jos\u00e9 Spotlight.<\/p>\n![\"In-line](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/03\/interactive-321838904008.png\")
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