Visitors staying in hotels and vacation rentals will have to pay more if voters approve ballot measures from Santa Barbara County, Buellton, Solvang and Carpinteria in November.
Leaders of all four governments propose increasing their transient occupancy tax rates (also known as a bed tax or hotel tax). Those are paid by people staying in hotels, motels and short-term rentals for 30 days or less.
The increases require majority voter approval (50% plus one vote) to pass.
A yes vote would approve the increase, and a no vote would reject the increase, keeping the rates where they are now.
TOT revenues are general fund revenues that can be used for government services or capital projects.
County Areas
Santa Barbara County’s Measure H would apply to unincorporated areas (not within city limits), including communities such as Orcutt, Isla Vista, the Goleta Valley and Montecito.
Measure H asks voters to increase the rate to 14% from 12%. That would generate an additional $3 million a year, according to budget staff.
In recent years, the county has brought in TOT revenues of about $13.8 million a year from hotels and $3.4 million from vacation rentals.
There was high travel demand post-pandemic, but year-over-year growth has slowed down, according to budget staff.
The current year’s budget targets $17.7 million in TOT revenues, which represents an all-time high for the county.
Four county supervisors signed arguments in favor of the measure, saying Measure H “generates money for the core services you expect and deserve.”
Supervisors Joan Hartmann and Das Williams argue it’s funded by tourists, not residents, and has spending priorities: emergency services, road repair, homelessness services and flood control.
There is transparency through public budget hearings and independent audits, Supervisors Laura Capps and Steve Lavagnino write in ballot rebuttal arguments.
Supervisor Bob Nelson voted against putting this measure on the ballot and did not sign ballot arguments.
Opponents argue that the supervisors are wasting taxpayer dollars with “misplaced priorities” and will likely spend this money on employee salaries and benefits.
“Please don’t vote for higher taxes until county supervisors tighten their own belt as working families have had to do,” Tom Widroe, Lorena Chavez, June Van Wingerden, Kari Campbell Bohard and Andy Caldwell wrote in the ballot arguments.
Measure H names spending priorities, but as a general tax, “there are no guarantees on how our tax money will be spent,” they argue in the rebuttal statement.
The Santa Barbara South Coast Chamber of Commerce and Visit Santa Barbara came out against the county’s measure during June hearings. The groups said a higher rate leaves businesses at a competitive disadvantage, and the current hotel vacancy rate is more than 30%.
Read more about the county’s Measure H.
Buellton & Solvang
The cities of Buellton and Solvang also put TOT increases on the November ballot.
Both cities want voters to approve a rate increase to 14% from 12%.
Buellton’s Measure D would increase yearly revenues by about $600,000.
“This is an investment in Buellton’s future with no additional taxes to Buellton residents,” Mayor Dave King wrote in the ballot argument in favor of the measure.
No one submitted an argument against the measure.
The money would be used for city parks, roads, community services, recreation and maintenance, and a portion would go to the Visitor’s Bureau to promote tourism, King wrote.
Solvang’s Measure E would provide an additional $1 million per year.
“Tourists visiting our community should pay their fair share for the costs they create so we aren’t the ones shouldering the costs,” local business owners Aaron Petersen, Edwin Hans Skytt, Kim Jensen, Jamie Baker and Daniel Cassara wrote.
Pre-election outreach showed a majority of residents would support this increase, they said.
Another group of business owners filed an argument against the measure, saying a higher TOT rate could dampen tourism.
“This is a tax sold to you as paid only by the tourist. Don’t be fooled. A decline in tourism harms the entire economy resulting in less tax revenue — meaning we all pay,” Jake Rodriguez, Dan Nielsen and Allan Jones wrote.
Other parts of the county have lower rates — including Lompoc and Santa Maria at 10% — which makes Solvang “less attractive to overnight guests,” they argue, adding that a higher rate could affect hotel occupancy.
Read more about Buellton’s Measure D.
Read more about Solvang’s Measure E.
Carpinteria
Carpinteria’s Measure B on the ballot asks city voters to approve a TOT increase to 15% from 12%.
That would make it the highest rate in the county.
Over the past three years, the city reported an average of $3.1 million in TOT revenues, according to the city attorney’s impartial analysis of Measure B.
The analysis said increasing the rate 3% would generate an additional $750,000 per year.
All five City Council members signed the argument in favor of Measure B.
“This proposed hotel bed tax increase is fair, reasonable, and necessary to help ensure the long-term financial health of the city and the continuation of important city services utilized by residents and visitors from throughout California and around the world,” they wrote.
No one submitted a ballot argument against it.
Read more about Carpinteria’s Measure B.