7% Growth in Hotel Transient Occupancy Tax Tempered by Short-Term Rental Enforcement

The City of Santa Barbara received $1.8 million in transient occupancy tax (TOT) for the month of June 2017, exceeding June 2016 collections by 0.5%. TOT collected from hotels increased 7% from the prior June, which was partially offset by an 84% 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. The 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.

June marks the final month in the City’s fiscal year, which runs from July 1 through June 30.  Total TOT revenue collected in fiscal year 2017 was approximately $19 million, resulting in a 2.6% growth rate for the year. Total TOT revenue fell short of the City’s adopted TOT budget of $19,766,200.

The Transient Occupancy Tax table can be viewed here.  Previous Revenue News releases can be viewed here.