Measure E: Business License Tax on Energy Facilities and Data Centers
Unincorporated areas only
Recommendation: Yes
Measure E updates the county’s business license tax for commercial energy operations in unincorporated Solano County. It raises the tax on commercial wind turbines for the first time since 1994, from $0.00003 to $0.00008 per kilowatt-hour. It adds new taxes on commercial solar, battery energy storage, and natural gas extraction. It also sets a tax of $5 per square foot on data centers. The county estimates at least $353,000 a year in new revenue for the general fund.
These facilities use county land and roads and depend on county services, and the wind rate has not been updated in more than thirty years. Measure E brings those charges up to date.
The tax is paid by facility operators, not by households. The per-unit amounts are small, a tiny fraction of a cent per kilowatt-hour, and power from these facilities is sold into a statewide market. Any effect on residential electric bills would be too small to notice. Rooftop solar on homes is not affected.
The data center provision applies only to future projects. There are currently no data centers in unincorporated Solano County. The tax gives the county a way to recover some of the local costs if one is built.
One fair criticism: the revenue goes to the general fund rather than being set aside for the roads, infrastructure, or communities most affected by these facilities. Voters should expect the county to report how the money is used.
Measure H: Hotel and Lodging Tax Increase
Unincorporated areas only
Recommendation: No
Measure H would raise the transient occupancy tax, the tax added to lodging bills, from 5% to 12% for hotels, motels, inns, and vacation rentals in unincorporated Solano County.
This measure does not apply in Vallejo. It covers only lodging outside city limits. Vallejo hotels and short-term rentals are not affected, but Vallejo voters will still see it on the ballot because it is a county measure.
The county expects the increase to raise about $58,500 a year for the general fund. That is a very small amount for a county budget, and it would come from a small number of inns, bed and breakfasts, and vacation rentals in rural parts of the county. More than doubling the rate should come with a clear purpose and a meaningful return. Measure H offers neither. The money is not earmarked for anything specific, and the amount is too small to make a noticeable difference in county services.
Supporters point out that unincorporated lodging is currently taxed well below nearby cities. That is true, but bringing rates into line is not a strong enough reason on its own to more than double the rate for this little revenue.
A No vote here is also a message about what belongs on the ballot. Voters are being asked to weigh in on 14 statewide propositions, several local races, and multiple tax measures this year. A measure that brings in about $58,500 a year and doesn’t apply to most county residents adds to that load without giving voters much to decide. Ballot space and voter attention are limited, and measures should justify their place on the ballot.