Transient Occupancy Tax Shows Strong Growth in April
Source: City of Santa Barbara
The City of Santa Barbara received over $1.62 million in transient occupancy tax (TOT) for the month of April 2017, exceeding April 2016 collections by 13.6%. Sunny weather and clear skies may have contributed to this strong growth, as evidenced by higher occupancy and room rates. TOT collected from hotels increased 16% from the prior April, which was partially offset by an 81% 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. A decline in short-term rental TOT revenue was included in the fiscal year 2017 budget in accordance with the City’s enforcement of the existing Zoning Ordinance, which prohibits short-term rentals in most residential zoning districts.
The City has collected over $15.7 million in TOT revenue in the first ten months of the fiscal year, with total year-to-date growth of 3.3%. The adopted TOT budget for fiscal year 2017 assumed 6.5% growth and is $19,766,200.
The Transient Occupancy Tax table can be viewed here.