Tax Measures

Sales Tax Measures

Measure R

In 2014, Truckee voters approved Measure R, creating a dedicated funding source to construct, repair, and maintain Truckee's trail system. This funding supports projects like the construction of the Truckee River Legacy Trail, as well as the repair and maintenance of existing trails, ensuring they are kept in good condition year-round.

This local trail funding source expired on September 30, 2024, and was subsequently renewed as Measure U.

Measure U

In June 2022, voters approved Measure U, which renewed an existing quarter-cent trail sales tax at a rate of half a cent to provide approximately $3 million annually to:

  • Protect natural open space along trail corridors.
  • Continue construction of the Truckee River Legacy Trail to provide a paved trail all the way from Glenshire to Donner Lake.
  • Maintain and repair existing trails so they are kept in good condition all year.
  • Provide safer routes to schools for local children who walk or bike to school.
  • Improve bike lanes and multi-use paths for bicyclist and pedestrian safety.

Funding trail improvements and maintenance from a dedicated local sales tax ensures that everyone who enjoys the Truckee area supports Truckee's trails. Measure U ensures fiscal accountability protections:

  • Every penny must stay local to benefit Truckee.
  • Funds can only be used to improve and maintain trails, bike lanes and multi-use paths in and around the Truckee community.
  • Funding cannot be taken away by the state or used for other purposes.
  • An independent citizens' oversight committee and annual audits are required.
  • Essential purchases like groceries and prescription medicine are exempt from sales tax, which helps ensure the cost is not a burden to those on fixed or limited incomes

Measure U became effective on October 1, 2024.

Measure V

Truckee voters approved Measure V in November 2008, extending the Town's pre-existing one-half cent sales tax for 20 more years, with a sunset of 2028. 

The current Sales and Use Tax rate in the Town of Truckee is 8.50%. Of that percentage, 0.5% is allocated to Measure V, which funds road maintenance and 0.5% is allocated to Measure U, which funds trail improvements and maintenance.

Measure E

To enhance local funding for essential services and maximize the portion of local sales tax funding that stays in Truckee, the Town proposed a measure for local voters to consider on the November 5th, 2024, ballot that would increase the local sales tax rate paid by residents, tourists, and second homeowners by ½%, generating approximately $3.5 million annually to fund essential services, such as:

  • Preparing for wildfires and other natural disasters.
  • Providing transit service to all, including seniors and people with disabilities.
  • Keeping pollution out of our local creeks, rivers, lakes and waterways.
  • Protecting the environment and keeping local parks, recreation, and community facilities safe, clean, and well maintained.
  • Providing workforce housing to residents and essential professionals such as teachers, nurses, firefighters, paramedics, and deputies.

Measure E became effective on April 1, 2025.

Other Tax Measures

Measure K

Measure K is the Town of Truckee's Transient Occupancy Tax (TOT) Revenue Measure. In November 2020, voters approved the increase of the Transient Occupancy Tax from a rate of 10% to 12%. Measure K did not raise taxes for Truckee residents - it applies only to hotel and short-term rental overnight guests. Measure K provides local funding for general Town services such as affordable and achievable housing, open space preservation, and wildfire preparation. TOT collected from visitors is meant to pay for the incremental cost of visitors' use of the Town's facilities and services, helping to share those costs with the residents who pay for the facilities and services through their property taxes.

Measure K increased the Transient Occupancy Tax (TOT) rate from 10% to 12% and went into effect from January 1, 2021. The Truckee Tourism Business Improvement District (TTBID) or the tourism fee, is a self-assessment approved by Truckee's lodging businesses that is remitted to Visit Truckee-Tahoe to fund destination management, visitor communications, and marketing programs. The TTBID assessment was decreased from 2% to 1.25% bringing the total guest levy to 13.25%.

Measure K sunsets on December 31, 2040, approximately 20 years from its initial implementation. It is expected that this measure will generate approximately $700,000 annually, which equates to an estimated $14M over 20 years.