Santa Barbara County leaders plan more enforcement for transient occupancy tax collection from short-term rentals, and they want voters to approve a higher tax rate this fall.
TOT is levied on visitors staying at hotels, motels and short-term vacation rentals.
Santa Barbara County’s Board of Supervisors voted Tuesday to authorize filing liens against operators for delinquent TOT, and seizure and sale of assets or property belonging to operators for delinquent TOT.
Treasurer-Tax Collector Harry Hagen said they are the same collection enforcement tools used for unsecured tax roll delinquencies.
Another ordinance amendment makes it clear that the operator is responsible for paying TOT regardless of whether they collected the fees from customers, Hagen said.
Supervisor Joan Hartmann said Santa Ynez Valley residents often report unpermitted short-term rentals to her office, and asked Hagen how he tracks the permitting.
“From my perspective, whether it’s permitted or not, if they’re renting, I’m still going to collect,” he said.
Hartmann said the enforcement tools are a “big step.” The county likely will expand its short-term rental portfolio with the agricultural enterprise ordinance, which would allow campgrounds, farm stays and other establishments, she noted.
The ability to file liens and seize property “goes a long ways, giving you some teeth being able to collect,” Hagen said.
The supervisors unanimously approved the changes.
Scroll down to view the ordinance changes.
Supervisors Put TOT Rate Increase on Ballot
They also voted 4-1 to put a transient occupancy tax rate increase on the November ballot, with Supervisor Bob Nelson opposed.
The county proposes increasing the TOT rate for unincorporated areas to 14% from 12%.
Polling showed voter support for the move, staff said. Polling didn’t show support for increasing the sales tax rate, which supervisors decided not to put on the ballot.
Several cities will put their own tax measures to voters in November.
The cities of Buellton, Carpinteria and Solvang are talking about TOT increases, and the Santa Barbara City Council voted to put a sales tax increase on the ballot.