Hotel Tax Growth Due to Short-Term Rental Crackdown

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Source: City of Santa Barbara

The City of Santa Barbara received $1.8 million in transient occupancy tax (TOT) for the month of September 2017, which is 1% less than September 2016 collections. TOT collected from hotels increased 3.3% from the prior September, which was offset by a 71% decline in short-term rentals, as anticipated. 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 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.

September marks the third 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.

Previous Revenue News releases can be viewed here:

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a-1509232606 Oct 28, 2017 04:16 PM
Hotel Tax Growth Due to Short-Term Rental Crackdown

Screw hotels - AirBnB is cheaper, more convenient, has better accommodations, and they aren't intent on building ugly monstrosities in communities that don't want them (a la Goleta).

Flicka Oct 28, 2017 06:27 PM
Hotel Tax Growth Due to Short-Term Rental Crackdown

Problem is a lot of neighbors don't like the constant changing of short term neighbors who don't necessarily respect the neighborhood; loud parties, lots of cars, etc.

420722 Oct 28, 2017 08:58 PM
Hotel Tax Growth Due to Short-Term Rental Crackdown

You are correct when you say we don’t want the hotel monstrosities in goleta but you are wrong if you think most people want Airbnb instead. What we want is more options for a place to live at a reasonable price. Not a 3000 dollar a month box with kitchenette only and revolving neighbors.

Mesarats Oct 28, 2017 11:39 PM
Hotel Tax Growth Due to Short-Term Rental Crackdown

Maybe it is more related to the high cost of hotel rooms. Santa Barbara is now one of the highest average daily average room rate in the state. Not great for the middle or lower income people, but it does line up within our housing costs and the demographics of people moving here. The city does like that.

a-1509295875 Oct 29, 2017 09:51 AM
Hotel Tax Growth Due to Short-Term Rental Crackdown

Until recently, our neighbor ran an Airbnb unit, and we loved meeting all of the people who would visit: A couple from France, a student from Italy, a visiting professor at UCSB, cancer treatment patient, retired cattle rancher from Australia, two monks from "somewhere", a used car saleswoman from Chicago, a pet "psychic", three different medical interns at Cottage, a cheese maker, a guy who sold gold jewelry, two bakers from Argentina, ....for us it was fascinating, very fascinating. Never a loud party, and 100 percent were respectful. Why be ashamed?

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