Eureka hotel tax hike sparks clash over tourism image

Eureka voters will decide in November whether to raise the city’s hotel tax from 10% to 12%, a change that would bring in about $700,000 a year for public safety, road work and other services. The Eureka City Council approved putting the measure on the November 3, 2026, municipal election ballot, and the proposal would apply to hotels and short-term vacation rentals inside city limits.

The tax increase would sit on top of Eureka’s existing 10% transient occupancy tax and the separate 2% tourism business improvement district assessment collected for the Humboldt Lodging Alliance on qualifying lodging businesses with five or more units. The ballot question would direct the new revenue to police, fire, 911 emergency medical response, street repair, road safety, parks and recreation, community health and mental health services, and local business and economic development. It would take a majority vote to pass, and the Finance Advisory Committee would oversee the money with independent financial audits.

The proposal grew out of a June 16, 2026, request from the council to bring it forward, but the policy debate quickly widened beyond the city budget. Hotel owners and members of the Eureka Lodging Alliance opposed the increase during public comment, arguing that a higher tax could push travelers toward other North Coast lodging options. The city staff report also flagged that concern, noting that a higher transient occupancy tax could deter people from staying in Eureka hotels.

Humboldt County raised its transient occupancy tax from 10% to 12% starting in January 2023, and the city staff report says county TOT revenue climbed from $3.7 million in fiscal year 2021-22, when the rate was 10%, to $6.1 million in fiscal year 2023-24 after the increase took effect.