Burlingame eyes hotel tax increase 

Estimates for the 2025-26 hotel tax sit at $22.8 million, which is far better than the $5.7 million generated during the peak pandemic year of 2020-21 but not a full recuperation to pre-covid levels. From 2018-19, the city generated $29.4 million in TOT. 

Burlingame also has increasing expenses to consider, Goldman said, including funding undergrounding of power lines along El Camino Real, purchasing a new City Hall building and refurbishing the corporation yard. While the city still has a balanced operating budget, its predictions for future years show a net general fund deficit. 

“Without new revenue, we will see those red numbers getting bigger and bigger. We have increasing costs like everybody else,” Goldman said. 

Before committing to a TOT ballot measure, the city would need to conduct polling and see where residents stand on the issue, Goldman said. That would mean testing out a variety of increases, including to 14%, which would increase this year’s revenue by $3.8 million, to 15%, which would increase this year’s revenue by $5.7 million, and 15.5%, which would increase this year’s revenue by $6.6 million. 

If the polling is positive and shows around 50% or more support, the city could ostensibly proceed. If it’s negative, Burlingame may need to reconsider, Goldman said. 

“We’re in this early phase now to get the data, get the information from the public, if this is actually feasible,” she said. 

Representatives from the hotel and hospitality industry were present at the study session to share their experiences. 

With pressure to lower daily rates for hotel stays and compete with neighbors like San Francisco, it’s more important than ever to continue to invest in quality city amenities that will draw tourist and airline business, Sam Kim, Embassy Suites Burlingame Waterfront general manager, said. 

“We lost an airline to an SF hotel, because they are beating us in that average daily rate,” he said. “We’re trying to compete with that … where we try to drive is with quality.” 

While it may be necessary for the city to raise its hotel occupancy taxes, councilmembers are cognizant of the increasing challenges hotels are facing, Councilmember Peter Stevenson said.

“To me, it’s pretty clear we need to move the occupancy tax,” he said. “Let’s face it, you guys are facing downward [average daily rate] pressure and we’re a city looking to recover … there's a little bit of tug and pull there, I think everybody on the council appreciates and recognizes.” 

Burlingame is continuing to invest in the waterfront area where many hotels are located, Mayor Michael Brownrigg reiterated. The city has also looked for ways to increase its revenue outside of the hotel space. 

“We really do see it as a symbiotic relationship. As you know, we are focused much more than most communities on sea level rise, and that's because we understand the value and the importance of that segment of our city, where so many of your businesses are,” he said. “We have raised the business license tax, sales tax … not because we like to, but because we have these growing costs for a growing city.”