Visitors to Santa Barbara County may pay a bit more when they stay in local hotels and motels, if voters approve a measure asking them to do just that this November.
Measure O, one of the many ballot measures in front of voters during the Nov. 4 general election, raises the transient-occupancy tax, often known as a hotel tax or a bed tax because people who rent a short-term room are charged the fee.
The measure would only apply to unincorporated areas of the county — cities collect their own transient-occupancy taxes — and would raise the current rate to 12.5 percent from 10 percent.
The current rate generated $7.5 million last year for the county and, if the rate increase is approved, an additional $1.9 million annually would be brought into the county’s general fund.
The tax increase requires a simple majority for approval. If the measure doesn’t pass, the rate will remain at 10 percent.
If approved, the new tax rate would take effect Jan. 1.
Two county supervisors who are often aligned politically are approaching the issue from opposing positions this time.
Fifth District Supervisor Steve Lavagnino has spoken out in favor of the measure, reasoning that the county hasn’t raised the tax in 24 years.
“For a long time, our Board (of Supervisors) has been trying to find ways to direct more money toward economic development and this would be a perfect tool,” he said, adding that the money would be collected from people who live outside the area who stay in local hotels.
Lavagnino said the money would go toward spending to promote Santa Barbara County as a destination.
“When we travel to Los Angeles and San Francisco and Napa, we pay 14 or 15 percent,” he said of transient-occupancy taxes in other locations.
Meanwhile, Fourth District Supervisor Peter Adam said he wouldn’t support the measure because the money isn’t being used for a specific purpose.
“If they said to people, we want to use this money to go buy new copiers or any number of things, I would have supported giving people the opportunity to vote on it,” he said.
“This ‘trust us’ thing I can’t agree with,” he said. “This is a thinly veiled attempt to throw more money at the general fund.”
Although the money doesn’t have a specific purpose spelled out in the ballot measure, Lavagnino said he feels confident the money will be used in a prudent way.
“I trust the Board of Supervisors to spend that money wisely,” he said.
— Noozhawk staff writer Lara Cooper can be reached at lcooper@noozhawk.com. Follow Noozhawk on Twitter: @noozhawk, @NoozhawkNews and @NoozhawkBiz. Connect with Noozhawk on Facebook.
