Edhat StaffSource: City of Santa Barbara
The City of Santa Barbara received $2.3 million in transient occupancy tax (TOT) for the month of July 2017, which is 1.7% less than July 2016 collections. TOT collected from hotels increased 4% from the prior July, which was offset by a 72% decline in short-term rentals. Since short-term rentals constitute a relatively small portion of overall TOT, the large decline in this sector does not have a corresponding impact on overall TOT growth. This anticipated decline in TOT from vacation rentals is the result of the City’s efforts, beginning in fiscal year 2017, to enforce existing zoning ordinances prohibiting vacation rentals in certain zoning districts. This month’s growth in hotel receipts and decline in short-term rental operations is consistent with the City’s budgeted estimates for fiscal year 2018.
July marks the first month in the City’s fiscal year, which runs from July 1 through June 30. The City’s adopted TOT budget is $19,262,400.
The Transient Occupancy Tax table can be viewed here.
Clearly for the city of Santa Barbara, the hotels represent a higher income for the city. I suspect that these regulations to vacation rental small business owners are being enforced as result ‘lobbyist’ efforts from hotel owners. What the city officials seems to overlook is that they are hurting their voters. Those 1,000+ small business owners that they are regulating will vote some day for someone who is more interested in helping the citizens, not the large corporations. If you need a place to stay in Santa Barbara, check http://rentalo.com. You can compare rates form hotels & vacation rentals, and get quotes within minutes.