Hotel Tax Growth Due to Short-Term Rental Crackdown

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: http://www.santabarbaraca.gov/gov/depts/finance/budget/revenue_news.asp