Tourists Help Pay for Tuolumne County Services Via TOT

It’s not often that a tax increase turns out to be a good news story — but Tuolumne County’s Transient Occupancy Tax (TOT) is exactly that.  A Transient Occupancy Tax is a fee levied on short-term rentals, used by and paid for by tourists. It is a common tax levied by local governments throughout the United States to increase revenue for their communities and to offset the cost impact on local infrastructure (1). Tuolumne County established its first TOT in 1964, setting the tax at six percent on hotels and motels, raising it to eight percent 19 years later, and then to ten percent in 2010 (2). In 2021, voters passed Measure U, which boosted the TOT to 12 percent and expanded it to include campgrounds, RV parks, and online marketplaces like Airbnb and VRBO (3).

Some local business leaders strongly opposed Measure U, alleging the increase would deter visitors. In its ballot statement, the coalition aiming to defeat the expanded TOT cited fears of a decrease in tourism, a rise in unemployment, more bankruptcies, and a general decline in local economic well-being. Supervisor Anaiah Kirk referred to Measure U as “folly” (3).

Although calls to defeat Measure U were loud and broadly advertised, voters disagreed. The measure passed with 54 percent of the vote (4). Four years later, fears of reduced tourism have proven to be unfounded. Tourist spending locally in 2025 was $304.2 million (6).

Tourism is the most important industry in Tuolumne County, according to Visit Tuolumne, the local agency that markets our county nationally and internationally and promotes our area as a desirable vacation destination (5, 6). The most up-to-date information available on TOT revenue is from 2024-25, when Tuolumne County collected over $9.6 million. The county allocates 25 percent of TOT dollars to fund Visit Tuolumne (5, 6). The remaining 75 percent goes directly into the General Fund to support law enforcement, fire protection, and schools, providing an estimated $1,058 in tax benefit per household (7).

Charming Gold Rush towns like Columbia and Sonora, picturesque mountain villages such as Twain Harte and Groveland, and seasonal sports and attractions all support a healthy tourism economy. Visit Tuolumne counts 2,700 direct tourism jobs (excluding Tribal casino businesses) in the county, but the broader economic benefit ripples throughout the community via tourists’ shopping, restaurant meals, and similar spin-offs, and is impossible to calculate (5). Tuolumne County citizens benefit from tourists choosing to visit our county, not only through commerce and the TOT fees, but by reminding us how lucky we are to live in such a beautiful place.

NOTES

1. “Your Guide to Understanding Occupancy Tax in the US,” MEWS, May 22, 2025.
2. “Transient Occupancy Tax,” Tuolumne County, California, viewed April 16, 2026. 
3. “Local Ballot Measures: Measure U,” July 20, 2021.
4. “TOT Increase Passes on Second Try,” My Mother Lode, November 6, 2020.
5. “Why Tourism Matters Toolkit,” Visit Tuolumne, viewed April 16, 2026.
6. “2024/25 VTC Annual Report,” Visit Tuolumne, viewed April 16, 2026.
7. “County of Tuolumne General Fund Summary,” Open Gov, viewed April 16, 2026.