Santa Barbara Sales & Transient Occupancy Tax Results

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Source: City Of Santa Barbara

Sales Tax Results for the Quarter Ended September 30, 2018

Santa Barbara received $6.78 million in sales tax revenues during the quarter ended September 30, 2018. This includes approximately $1 million in late payments from the state that relate to last fiscal year. A new software system implementation at the California Department of Tax and Fee Administration—the state agency which oversees the sales tax program— has caused delays in processing returns since May of this year. Correcting for these delays, the amount of sales tax revenue actually generated is closer to $5.67 million, which is about 2% above the same quarter last year.    

As the second largest General Fund revenue, the sales tax budget for the fiscal year is $22,276,000. Sales tax results for the December quarter will be available in February 2019.

For additional information on recent sales tax results, click here.

Transient Occupancy Tax Revenues for October 2018

The City of Santa Barbara collected approximately $1.63 million in transient occupancy taxes (TOT) for October 2018, which is 5.3% below October of last year, primarily due to a general decline in hotel occupancies.

The City has collected approximately $8 million in TOT revenues through the first four months of this fiscal year, which runs from July 1 through June 30.  The City’s adopted TOT budget is $19,605,700.

The Transient Occupancy Tax table can be viewed here.

 

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Factotum Dec 07, 2018 10:19 AM
Santa Barbara Sales & Transient Occupancy Tax Results

Message from the city budget office:" City Administrator’s Budget Message California Public Employees Retirement System (CalPERS). Over the last several years, CalPERS implemented changes to its funding policies aimed at more directly addressing unfunded pension costs largely created by the investment losses sustained by CalPERS during the Great Recession of 2008. The latest of these policy changes, approved by the CalPERS Board, is the lowering of the assumed rate of return on its investments, which will be phased in over seven years starting in Fiscal Year 2019. This one policy change will have a dramatic impact to pension costs over that same period. The City is working on developing a plan on how to address these rising costs; however, key strategies will include controlling labor costs and negotiating cost sharing agreements with labor groups whereby employees pay more than they are now towards their retirement." NB: the only fallout from the "Great 2008 Recession" was admitting they could no longer count on guaranteed 8% returns forever. Along with changing longevity projections because both errors had fundamentally misrepresented the state of public pension funding to the taxpayers who are now stuck with making good on the resultant material public pension funding deficiencies.

SantaBarbaraObserver Dec 07, 2018 09:02 AM
Santa Barbara Sales & Transient Occupancy Tax Results

Until the city starts cutting expenditures, staff and stops using unrealistic (best case possible) revenue projections, we're going to remain on a sliding path to bankruptcy and tax increases. Even the best projections are showing a minor slow down in the economy next year. Add the flat and in many cases dropping property tax revenue and we're staring a major financial problem right in the face. But dont worry, Mayor Murillo is the most successful, experienced, capable and intelligent mayor we've ever had so she'll grow us right out of this mess with her magic beans... Or more likely, she'll accelerate the entire thing with her total lack of know-how or fiscal stewardship by spending more and more of our funds on useless consultants and pet-projects. Aren't we lucky to live in such a well run city?

Factotum Dec 07, 2018 09:38 AM
Santa Barbara Sales & Transient Occupancy Tax Results

Stand down orders to not cite vagrants for what? Trespassing, littering, public urination/defecation, waterway pollution, public intoxication, disturbing the peace, illegal habitation, harassment, assault, aggressive panhandling, illegal drug use, vandalism?

haskelslocal Dec 06, 2018 09:42 AM
Santa Barbara Sales & Transient Occupancy Tax Results

So summer sales tax increase looks good while December ending took a hit end 2017. Expectation this winter looks flat thus far, although more free cash flow available to spend. Increase online with fewer brick & stick will lessen tax receipts. It'd be interesting to see further breakdown demonstrating taxes via categories. Compare restaurants vs. stores vs. commodity goods. Get an idea how much is effected by those who stay in hotels vs. just the regular folk shopping about town.

a-1545076204 Dec 05, 2018 08:39 PM
Santa Barbara Sales & Transient Occupancy Tax Results

Goleta has an extremely bright future. They've learned many of the "not to do" lessons from Santa Barbara. They've put up several higher-end brand hotels: Hilton, Courtyard, Marriott, and have renovated a few in the Calle Real "corridor." They are the cusp of really breaking through as their own destination, without the Santa Barbara "piggy-back" overflow effect. National store brands are coming in folks, and that means only one thing for Goleta: $$Ka-Ching-a-ling-a-ling$$. My cousin in Salinas could not believe what she saw in downtown SB when she was visiting for Thanksgiving. To use her words, she was "sickened by the filth, stench, and empty businesses." Maybe it's time SB start taking a look at what the City of Goleta is doing so well.

SBWoman Dec 07, 2018 08:06 AM
Santa Barbara Sales & Transient Occupancy Tax Results

Macy’s and other large spaces would make great locations for downtown Sheraton, Marriott, Hyatt, Meridian hotels that could include Vacation Club floors to ensure high occupancy. Additionally, SB downtown would benefit from a ‘Club Quarters’: destination cities from DC to SF have one in the City Core. They’re affordably basic, FUN, clean, crisp, social and always in City central core to enable business, student, single & couple travelers to access museums, theaters, restaurants, etc. Simply enroll in program to get your college, alma mater, or Club’s nightly rate. Rather than pay $500/night in DC, pay $90-$150 to have money to spend accessing more City offerings. In addition to colleges, private clubs such as the University Club, some Rotaries, Elks, Soroptomisys etc participate. I often wonder with so many area colleges, why Council has not instructed staff to get SB a Club Quarters. The bring in Road Scholars (Retored senior travelers), parents visiting their student, and others with money to spend downtown. Randy Rowse is correct: downtown offers government, and attractions staffed by lower paid service workers. It’s time to get real and serious. Make State St a fabulous tourist destination on both sides of Hwy 101.

a-1545076204 Dec 05, 2018 04:10 PM
Santa Barbara Sales & Transient Occupancy Tax Results

All I know is that SB gets less sales tax from me. When they implemented a sales tax increase I decided to do my shopping in Goleta. Often better prices out there anyhow.

CoastWatch Dec 05, 2018 11:08 AM
Santa Barbara Sales & Transient Occupancy Tax Results

Look at Portland and San Francisco for what is going to be Santa Barbara's future with the way they handle vagrants over tourism ... The "occupancy rate for shelters, trailers and sidewalks is increasing ten fold- The word is out! Not to mention all the "trimmers" that will be converging on Santa Barbara and Santa Barbara County for the harvesting of pot... They will soon be arriving in their trashed R.V.'s in a neighborhood near you.

Factotum Dec 05, 2018 08:54 AM
Santa Barbara Sales & Transient Occupancy Tax Results

City workers were just handed a 2% raise - while city revenues are declining. Their ace in the whole is the automatic 2% increase in property taxes to fund these continued employee raises and benefits. This also means this raise will cannibalize any new Measure C taxes that were promised to be spent on capital improvements and infrastructure. Nope, now the city employees get first dibs, just as opponents to Measure C warned. Property sales are flattening too so without the automatic 2% increase, this would be a declining revenue source too. The city voters finally ate all their seed corn, electing one to many tax and spend city councils.

Factotum Dec 07, 2018 04:37 PM
Santa Barbara Sales & Transient Occupancy Tax Results

The mind boggles at the thought of all 2500 city employees being fully benefited full-time workers. Do that math for us, Mas Gaviota. At a minimum of $100K per FT employee times 2500 employees.

Factotum Dec 07, 2018 04:35 PM
Santa Barbara Sales & Transient Occupancy Tax Results

City employee expenses are rising and with each additional employee raise or job creation more revenues must be transferred to fund the already massive employee pension debt (half billion dollars). Additionally, city finance recognizes since CalPers is asking for ever larger payments due to their lowering of expected returns and increases in payout longevity - read the city budget statements. This means city expenses must decline and/or numbers of city employees need to be reduced. Take your pick. The unfunded infrastructure backlog is so big (half billion dollars), even 100% of Measure C will not fund it. At some point the city employees have to stop taking the bulk of new revenues and city decision makers need to plow new revenues back into the failing infrastructure -starting with the miles of serious road and sidewalk repairs.

Mas Gaviota Dec 07, 2018 01:34 PM
Santa Barbara Sales & Transient Occupancy Tax Results

@SBOBSERVER I am defending the facts. Have you ever actually taken the time to read the audited finacial statements for the City? I am guessing no. Here is a highlight from the one for the fiscal year ending June 30th 2018. "The City of Santa Barbara's net position (assests and deferred outflows minus liabilities and deferred inflows) totaled $787million a net increase of about $12 million." Here is a link to years of audited financial reports: https://www.santabarbaraca.gov/gov/depts/finance/budget/cafr.asp Is that too much reality for you?

SantaBarbaraObserver Dec 07, 2018 11:39 AM
Santa Barbara Sales & Transient Occupancy Tax Results

No idea what you're defending Mas, but it seems that you are not very good with math. But hey, as long as you "feel" that the city is in good shape financially, it must be... Never mind the fact that the words "vast (and) majority" have actual, literal meanings... Is this like the POTUS who feels that global warming is a hoax regardless of the actual data? What a time to be alive! Up is down, down is up and to heck with facts and figures, I go with my feelings!

Mas Gaviota Dec 07, 2018 10:33 AM
Santa Barbara Sales & Transient Occupancy Tax Results

@Santabarbaraobserver. You are not very good at observations. The vast majority of Santa Barbara City workers are part time (by design) and they get very few benefits. But hey do not let the facts get in the way of your feelings.

SantaBarbaraObserver Dec 06, 2018 10:32 AM
Santa Barbara Sales & Transient Occupancy Tax Results

Dont try and talk figures with the city's own Factotum. They are not capable of seeing the forest from the floor and simply parrot their bosses. And why not? They're all guaranteed jobs and pensions for life... as long as they dont rock the boat or do some basic math...

Factotum Dec 05, 2018 07:47 PM
Santa Barbara Sales & Transient Occupancy Tax Results

Mas G, Look at the revenue charts also presented over time, not just this one quarter and realize the devastation this city was facing last year before you conclude a minor quarterly increases over last year will fund the magnitude of the city's continued and irresponsible spending patterns.

Mas Gaviota Dec 05, 2018 05:08 PM
Santa Barbara Sales & Transient Occupancy Tax Results

Factotum, re read the article. The sales tax revenues went up by 2%. 1% of that is due to the increase in the rate, the other 1% is due to increased sales. The TOT is tracking with budget projections. The city is doing just fine and the sky is not falling Mr. Little.

SantaBarbaraObserver Dec 06, 2018 10:28 AM
Santa Barbara Sales & Transient Occupancy Tax Results

This comment exemplifies the Millennial Gen. They think everything is about them. I wonder where they learned that? Could it be their helicopter parents the Me Me MEEEE generation that carefully wrapped them all in bubblewrap, made sure they were always protected while awarding them trophy's just for showing up. Nah, that cant be...

Factotum Dec 05, 2018 01:44 PM
Santa Barbara Sales & Transient Occupancy Tax Results

All one would then need to do is relabel empty hotel space as AirB&B's, so bargain-hunting Millennials can be semantically satisfied and get the same deal. Done. Or get rid of the street bums and relabel this entire town as a hassle-free, high-end tourism destination for older, affluent vacationers. Which is what it should have been doing all along anyway.

andrewbaker77 Dec 05, 2018 01:24 PM
Santa Barbara Sales & Transient Occupancy Tax Results

Yes, tourism is down because the driving force of tourism are millennials (see Forbes, BBC, GlobalBlue) who turn to the mobile to find their next destination. And app #1 for their search is AirBnB. If your city is not on AirBnB's platform, you are not in the millennial's destination plans. Put STRs in SB and you'll put millennial tourists in SB and you'll save State St. Simple as that. - AB

Factotum Dec 05, 2018 08:57 AM
Santa Barbara Sales & Transient Occupancy Tax Results

Read the handwriting on the wall - tourism is down so even STR cannot save this town. Uncontrolled vagrancy blight destroyed one more critical sector of the local economy.

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