Sales and Transient Tax Results Increased for Santa Barbara
Source: City of Santa Barbara
Sales Tax Results for the City of Santa Barbara – Quarter Ended September 30, 2021
The City of Santa Barbara received $7.3 million in sales tax revenue during the quarter ended September 30, 2021, which is 23% above the same quarter last year. This increase is largely due to improved economic activity since last year, when the COVID-19 pandemic was still at its peak. Other contributing factors are the effects of higher inflation, continued growth in online sales, and the collection of deferred sales taxes (which were instituted by the Governor as an early COVID-19 relief measure for businesses). However, the following quarters might potentially reflect the negative impact on economic activity caused by the new COVID-19 Omicron variant.
The September quarter is the first quarter of the City’s fiscal year and the sales tax revenue budget for the fiscal year is $23.2 million.
For additional information on recent sales tax results, click here.
Transient Occupancy Tax Results for the City of Santa Barbara – Month Ended November 30, 2021
The City of Santa Barbara collected $2.2 million in transient occupancy taxes (TOT) for November 2021. TOT revenues in November 2021 were about $990,000 above November collections last year—which was significantly impacted by COVID-19 restrictions and travel advisories. Compared to November 2019, revenues were higher by 39%; however, this is largely due to increased average daily rates, which are also 39% higher than November 2019.
The local travel industry has seen a steady improvement in demand for rooms throughout the fall as the State has lifted travel advisories and as access to vaccinations has become more widely available. The City has collected $14.8 million through November, the fifth month in the City’s fiscal year. The City’s adopted TOT budget for all funds is $23.4 million, of which $19.5 million is budgeted in the General Fund.
The Transient Occupancy Tax table can be viewed here. The City’s TOT tax rate is 12%. 10% goes to the City’s General Fund and the remaining 2% goes to the Creeks/Clean Water Fund.