FAQs about the TBID and town incorporation

The TBID was formed by the business community as a mechanism to increase revenues from the assessed businesses to fund economic development activities. It is not a ballot measure that all residents vote on. To renew the TBID, 50% plus one of the assessed businesses would be required to agree to its renewal.

Because businesses paying into the TBID don’t track whether their customers are residents or non-residents, the exact dollar amount contributed by residents is unknown. Just 1% of a resident’s local spending on certain items (tourism related and non-grocery items) is contributed to the TBID. An average dollar figure is not the same for every resident, as some people may spend more than others at local businesses that contribute to the TBID. Anecdotally, if a resident were to spend $500 dollars monthly ($6,000 annually) at a TBID-assessed business, it would result in contributing a total of $60.00 dollars to the TBID annually.

TBID funds support infrastructure projects like trails, human impact mitigation efforts like trash removal and education, community enhancement projects like workforce housing and the Watson Cabin restoration, the North Tahoe Chamber and business associations, economic development activities, tourism development efforts, advocacy efforts and more. These cumulative efforts help to make businesses sustainable year-round, keep residents employed, and offer a better experience for everyone who lives, works and plays in North Lake Tahoe.

Lodging, retail, restaurant, activities, and attractions businesses linked to the tourism industry are assessed by the TBID. This can include various types of lodging accommodations, bakeries, bars, sporting goods rentals/sales/service, boat rentals, convenience stores, food markets, galleries and gift shops, service stations, transportation services and more.

Retail items sold at the grocery store that are assessed by the TBID are typically the same items subject to sales tax.

No. The TBID renewal will continue to include all lodging, restaurant, retail, and activities and attractions businesses, existing and in the future, available to the public generally within the boundaries of the eastern portion of unincorporated Placer County.

The boundary separating Zone 1 and Zone 2 is the boundary line of the Tahoe National Forest. Zone 1 includes lodging businesses on the Lake Tahoe lakeshore and Zone 2 includes lodging businesses within the mountain resort areas of the TBID.

No. The TBID is a 1% assessment of all gross revenues on tourism-related businesses. Lodging contributes a 2% assessment, except for those in Palisades Tahoe and Northstar, which have a 1% assessment because those areas already have assessments to fund transportation.

If renewed, the TBID will be in place for a 10-year term. The current TBID expires in June 2026.

TOT is paid only by overnight visitors who stay in local hotels or short-term rentals. Per the Placer County Board of Supervisors’ direction, 100% of TOT funding generated in Eastern Placer County is to be invested in the benefit area. The Board of Supervisors looks to the NTCA and the committees it convenes for recommendations on how a portion of these funds are invested.

The North Lake Tahoe Tourism Business Improvement District (NLT-TBID) is a mechanism for funding economic development activities to increase revenues for the assessed businesses. Through the TBID, both day and overnight visitors contribute to North Lake Tahoe’s vitality through purchases at activity providers, restaurants, and retailers. The NTCA and the committees it convenes make decisions about how these funds are invested.

TOT funds community and quality of life services like workforce housing, transportation initiatives, bike paths, trash and litter services in public areas, snow removal, infrastructure improvements, and other programs important to North Lake Tahoe residents and businesses.

TBID assessments must be spent on programs and activities that directly benefit the businesses paying the assessment. Through the TOT-TBID Dollars at Work program, TBID revenues are being allocated to initiatives that are making progress on workforce housing, regional transportation, economic vitality, trails, recreation, and tourism mitigation.

• In our current TOT agreement with Placer County, the TOT that used to fund the NTCA before the TBID (“Freed up TOT”) is utilized to support workforce housing and transportation projects and programs via recommendation of the TOT Committee and the NTCA BOD to Placer County BOS.
• The NTCA is working with Placer County to develop terms of a new TOT contract that will match the new term of the renewed TBID.
• Both the TOT revenue that was freed-up because of the TBID and the 2% voter approved TOT, will continue to be recommended for investment by the TOT Committee to the NTCA Board of Directors, who then recommend to the Placer County Board of Supervisors for approval.
  • The longstanding policy of the Placer County Board of Supervisors is that 100% of the TOT revenue generated in North Lake Tahoe is reinvested back into the North Lake Tahoe community.

The NTCA will continue to administer the TOT-TBID Dollars at Work grant program that serves as the method for reinvesting tourism-generated funding back into the community in support of regional priorities that benefit residents, businesses and visitors.

In addition, as outlined in the “North Tahoe Community Alliance Contract Term Sheet” available here on pages 70-72, Placer County and the NTCA will collaborate to create a new, community-driven roadmap that updates and replaces the Tourism Master Plan and sets unified priorities—including housing, transportation, business support, and stewardship—for the long-term economic stability and vitality of North Lake Tahoe.

Between now and the NTCA December BOD meeting, the NTCA will be working with Placer County staff to assimilate points in the contract term sheet into a new TOT contract that will be brought before the Board of Supervisors, simultaneously with the new TBID District formation documents for approval.

The TBID renewal and the effort to incorporate are not related. The TBID generates approximately $6M from assessed businesses that is reinvested locally to help bolster a year-round economy, offset tourism impacts, and support local businesses. These funds are needed, regardless of potential incorporation.

The TBID was created to provide, for the first time, a way for both day and overnight visitors to contribute to the region’s vitality, and a new opportunity for local decision-making related to the reinvestment of the funds generated. To date, $33.5M in direct investment has been made because of the TOT-TBID Dollars at Work program. Without the TBID, our North Lake Tahoe community would have far fewer resources to address its most important priorities.

As the incorporation effort moves forward, the soonest it is likely to be on the ballot would be during the November 2026 general election. The TBID petition is going to businesses summer/fall of 2025. The TBID can and should exist independent of the outcome of an incorporation vote.

No. TOT is paid by visitors on overnight stays in hotels and short-term rentals, and that would continue to be the case whether North Lake Tahoe is incorporated or not.

If a new town/city is incorporated, TOT would be one of several funding mechanisms controlled by the new town/city. TOT would also continue to fund projects, programs and services as part of the TOT-TBID Dollars At Work program, recommended by the various committees and the board of the NTCA.

Currently, an agreement exists between Placer County and the NTCA whereby the County collects the TBID assessments and the NTCA and the committees it convenes make decisions about how the funds are invested.

If a new town/city is incorporated, TBID revenues would be collected by the new town/city, and the NTCA would continue to manage its allocation.

No. There are no new taxes that are incurred if voters choose to incorporate North Lake Tahoe. A new town/city would start with existing revenues and expenses. Following incorporation, residents within the new town/city would have to vote on and approve any proposed new local taxes.

If a new town/city is incorporated, TOT would be one of several funding mechanisms controlled by the new town/city. If the TBID is not renewed, we’d lose ~$6M annually to fund projects, programs and services prioritized by our local community.

Because incorporation and the TBID are not dependent on each other, the TOT-TBID Dollars at Work program would be unaffected and continue as it is today.

The TBID business and budget categories are outlined in the Management District Plan, which can be found here. The types of businesses assessed can be found in section III, and the budget outlining how the TBID funds are allocated is detailed in section IV.