Santa Barbara Hotel Tax 4.2% Under Budget for this Year

City of Santa Barbara (Edhat)

Transient Occupancy Tax Results for the City of Santa Barbara – March 2024

The City of Santa Barbara collected $2.3 Million in Transient Occupancy Taxes (TOT) for March 2024, the ninth month in the City’s fiscal year.

Year to date, the City has collected $23.3 Million in overall TOT, of which approximately $21.4 Million came from hotels and $1.9 Million from short-term rentals. Year to date, total TOT revenues are coming in 4.2% below budget.

The Transient Occupancy Tax (TOT) is a Tax on “Transient” guests staying in any hotel, inn, motel, or other commercial lodging establishment for a period of less than 30 days.

The City’s adopted TOT budget for all funds is $33.0 Million, of which $27.5 Million is budgeted in the General Fund.

The Transient Occupancy Tax table can be viewed on the attachment. The City’s TOT tax rate is 12.0%, of which 10.0% goes to the City’s General Fund and the remaining 2.0% goes to the Creeks/Clean Water Fund.

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    • The City council as is, minus Guiterez and Rouse, will continue to hurt Hotel tax revenue, as they will never relent on their stand on returning vehicles on State St. Their green energy anti automobile agenda will always trump State Street business success in these councilmen’s minds. The bikes and walking for 9 blocks is NOT working. Why the intransigence on bringing back vehicles for economic reasons. Studies show there is a 90% failure rate on closed street promenades. Hopefully they will renege and bring back the excitement and vitality to State Street with opening the Street. plus, anyone who has seen before and after closure pics will also want the beauty of State Street has suffered.
      I, as a continually returning tourist who loves SB, and especially State Street, will always continue to support the businesses on State Street. Joes Cafe, Olio Pizzeria, The Fishhouse, the Wharf, is just too wonderful to ever discontinue no matter what the future holds.

      • CHALF – can you explain, sincerely, how allowing cars on State street again will improve business? Honestly asking what the rationale is.

        “Studies show there is a 90% failure rate on closed street promenades. ” – Can you please cite those studies? I’m interested to see why more pedestrian access to storefronts causes businesses to fail.

        • Full disclosure I love the carless streets, and I see the shop closures too, but I also find it a stretch to say auto traffic alone will improve the business environment. The rationale that I have heard is that people like to drive by a place first and then decide where to go and then decide where to park. If a person did not enjoy walking then I can see some sense in this, but it’s a lot of driving around. It’s hard to believe that there are that many folks like that. I think it’s probably other larger reasons why many businesses struggle, but this might be a small contributor.
          The other reason I hear is parades, which bring a lot of traffic and business obviously in a short but reliable burst. I wonder how much effort CC has tried to find a way for parades and parklets to coexist? Maybe they’ve been working on it a lot and they just can’t figure it out, or maybe they just haven’t tried hard enough, idk. Seems solvable to me, but it would take a lot of cooperation.

        • SAC
          I actually was getting that from the ‘Fix State Street’ website. .To be honest, I actually did not research it, just took it as fact. If wrong I apologize, but maybe its correct.
          As for the vehicles making business better. I can only give my personal subjective observations of what I have seen over a fairly long period of time.
          We come there approx once every 6 months for what must be at least 15 yrs now. The Street was far busier. Especially on 3 day holidays, although we sometimes come at off days and weekends. We ,in all fairness, did after a few years, start seeing an increase in stores for lease before the pandemic. when vehicles were still allowed.
          We came during the pandemic, but outdoor dining was allowed. , then after as it became more normal. It just never seemed to return to the same vibrant Street. We saw businesses that were always busy, disappear. Like the Hofbrau house for instance. We always noticed many foreign languages and groups of tourist from other countries, and now far less. I guess also, the beauty of State Street, was really impacted, for me, by the constructed off side walk dining. I admit alot of this is subjective, but if you look at State Street all the way down toward the wharf, where the sidewalks are wider, there is traffic and no street dining, it just looks so much cleaner and organized.
          Just not crazy about the street being cluttered with sometimes, e-bikes speeding past and groups of young bike riders do ing wheelies and such. That plus I really hate the fact the super convenient trolley, no longer takes us up State. We are constantly going from Cabrillo to Victoria. We love eating at a few establishments on Victoria, and we love the Harbor and Wharf and man, sometimes I get tired…LOL. I seem to feel , my observation, is there are less people , shopping , the higher up we go and that the vehicles allowed might help the shops on the higher number streets, Seems the closed Street concentrates most of the business to the 500 to 700 blocks. Hopefully whatever is decided, helps the leasing of the closed shops. No matter. We will keep coming and supporting what is there. Love the place!

      • Chalf, it looks like Las Vegas (the town where you live) also has a “green energy” agenda. Are you as anti-environment on your hometown’s news sites as well?

        “Many Las Vegas policymakers and residents take great pride in being the first large city to run on 100 percent renewable energy, including massive solar and wind installations, hydropower from the Hoover Dam and an extensive electric vehicle charging infrastructure.”
        https://lasvegassun.com/news/2023/aug/22/nevada-holds-a-key-to-americas-energy-future/

        • They did not close down the strip to vehicle traffic.
          Thing is and I will spell it out for you so you understand me perfectly.
          I am 100% for the enviroment, BUT, this green energy insanity, where leaders try to frighten people into the world is ending due to man made global warming is utter nonsense. A countries citizens standard of living is connected to their ability to harvest cheap and abundant energy. Fossil fuel , for now, is that energy. Destroying peoples livlihood, or their standard of living pursuing a green agenda is insanity. Your governors edict of no more combustion engine sales in the near future is absurd and unattainable. You already have brown outs in the summer and tell people not to charge the electric vehicles you want to force them to buy. Far as I am concerned, its a scam . The US , under Biden, is destroying US car manufacturers with his EPA pressure campaign to keep tightening emissions standards to the point of insanity. Look at Chrysler. They are stopping making the 8 cylinder hemi’s that are their bread and butter. you are killing Jobs. No one is buying their EV’s. In fact no one is buying anyones EV’s anymore. The Dems forced this garbage on the public with no imput from the consumer. No infrastructure in place FIRST. It is always some stupid move with zero common sense. Toilets that flush 4 times automatically. Shower water savers that you stay in the shower 4 times longer to get the soap off.
          In the meantime, you think Gavin Newsom is driving a Prius? Notice Biden has a 1967 Corvette Stingray 427 in his garage. what does that get? 11 miles to the gallon? How about these horrendous LED lights blinding you on the 101. No more fluorescent lights says our controllers! Sorry, not going along with it. It should all be available and let the free market decide.
          Notice Germany went on this Green Energy obsession. Even closed their Nuclear plants. So, all the corporations are leaving for China and the greatest economy in western Europe is in freefall. BUT now, they are burning coal for fuel. You cannot make this stuff up.
          You have a no smoking in public ordinance I notice. Very environmental of you, BUT they are smoking weed all over the street, defecating and urinating in public. You seem to have your priorities a little off. So don’t preach about your environment concerns.

  1. Now is a good time for the city to come up with a plan to greatly reduce headcount and expenses. . Trying to increase revenue through increased parking fees and other measures is not the answer, work on being more efficient and reducing headcount instead.

  2. That sounds like a great idea. Will they do that? Meaning smaller, more efficient and fiscally-responsible government…I don’t think so. Too many ultra liberals throwing other peoples’ money around here to even hope for such a thing.

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