Council reaction to the West Sacramento Tourism Marketing District was overall positive, with several members noting it could go a long way to helping West Sacramento create its own tourism identity and get out for underneath the shadow of its larger neighbor, the City of Sacramento. Photo courtesy of the City of West Sacramento

WEST SACRAMENTO, CA (MPG) – West Sacramento City Council adopted a resolution at its Oct. 15 meeting that could potentially lead to more tourism dollars flowing into the West Sacramento economy.

Council unanimously approved taking steps to create a West Sacramento Tourism Marketing District, a benefit assessment district allowed under California law to “create revenue sources to help fund sales, marketing and destination development efforts for certain West Sacramento lodging businesses.”

The district’s boundaries would be those of the city itself.

The resolution declares the council’s intent to form the district, sets a time and place for a public meeting to hear public testimony on establishing the district and the levying of assessments as well as a time and place for a public hearing for final council vote on district establishment and assessments. Both public meetings will take place at the City Council Chambers in City Hall, the first at 7 p.m. Nov. 5 and the second at 7 p.m. Dec. 3.

Formation of a West Sacramento Tourism Marketing District has been part of the council’s strategic plan since 2023. In January 2024, council approved releasing a request for proposal for consulting services regarding district feasibility and formation. In March, the city hired Civitas Advisors to help with the work.

West Sacramento Economic Development Manager Meaghan Stiles told council when she originally brought the proposal forward in January that it was promoted as a TID or Tourism Improvement District.

“It is the same thing, just a difference in wording,” Stiles said of the change.

Funding for the district’s operations would come from an annual assessment of 2% on gross short-term sleeping room rental revenue from participating hoteliers with facilities of 50 or more rooms. The initial estimate for the assessment, which could begin Jan. 1, is $482,000.

Hoteliers could elect to implement a maximum rate of 4%, Stiles said, but could not go lower than 2%. The city would collect the assessment, potentially retaining $9,540 to cover its costs and pay the balance to a nonprofit owners association formed by the hoteliers and city to manage programs provided by a Management District Plan.

Under this plan, assessments will not be collected on stays longer than 30 consecutive days, stays beyond the city’s power to impose assessments, stays by any officer or employee of a foreign government exempted from transient occupancy tax (TOT, aka lodging taxes) per federal law, and contracted stays executed prior to Jan. 1, 2026.

The term of the proposed West Sacramento Tourism Marketing District is five years from the district’s start date, although Stiles said that could be extended to 10 years at the time of its renewal if hoteliers and City Council agreed.

Once per year beginning on that anniversary, business owners paying 50% or more of the assessment total would have 30 days to file a protest of that assessment and begin proceedings to terminate the district.

So far, Stiles said, lodging business owners in West Sacramento representing more than 50% of the total West Sacramento Tourism Marketing District assessment have submitted petitions in favor of forming the district. Those include Hampton Inn & Suites, SpringHill Suites by Marriott, Home2 Suites by Hilton, Holiday Inn Express, Extended Stay America, Motel 6 and Granada Inn.

“Granada Inn has more than 50 rooms. They however do not report or pay TOT taxes so they are a non-voting member,” Stiles said. “I would be remiss if I did not mention that Hampton and SpringHill Suites have really led the charge on this.”

The 2% proposed assessment would be on top of a current transient occupancy tax charge of 12%, bringing West Sacramento’s total guest charge to 14%. That makes it comparable to the city of Winters, who also has a Tourism Improvement District but less than other cities with Tourism Improvement District’s such as Sacramento (16.45%), Elk Grove (15%) and Rancho Cordova (16.50%).

Of the estimated $482,000 collected, $48,200 would cover administration costs and $24,100 would go to a contingency/reserve fund, leaving $409,700 for the owners’ association to use toward marketing the city as a destination location for tourism. Stiles said this could be used in a variety of ways, including traditional marketing materials and other ideas.

Council reaction to the West Sacramento Tourism Marketing District was overall positive, with several members noting it could go a long way to helping West Sacramento create its own tourism identity and get out for underneath the shadow of its larger neighbor, the City of Sacramento.

“Now we have a great opportunity to brand our community,” West Sacramento Vice Mayor Verna Sulpizio Hull said.