Santa Barbara County’s Proposed Bed-Tax Increase Moves Closer to November Ballot

Tax Measure Would Generate Nearly $3 Million from Tourists Annually

The Skyview in Los Alamos is one of the 24 hotels and motels in the county that would be affected by the proposed bed-tax increase. | Credit: Matt Kettmann File Photo

Santa Barbara County is moving forward with putting a proposed bed-tax increase on November’s general election ballot after a 4-1 vote by the Board of Supervisors on Tuesday, June 4.

The Transient Occupancy Tax (TOT), or bed tax, is part of the fees charged at hotels and other public lodgings within the unincorporated areas of Santa Barbara County. These areas include Montecito, Summerland, the majority of Santa Ynez Valley, and areas outside of the city of Goleta.

A total of 24 hotels and motels, as well as 520 short-term rentals, would be affected by the increased bed tax if more than 50 percent of county voters were to vote in favor of it this fall. These lodgings range from the Ramada by Wyndham Santa Barbara, where rooms start at around $200 per night, to Rosewood Miramar Beach Resort, where an overnight room can begin at about $1,300.

A May 14 meeting of the Board of Supervisors raised the possibility of increasing the TOT from its current 12 percent rate to 14 percent for an estimated county revenue of $2.9 million annually in general funds. On this Tuesday, the board voted to move forward, with only Supervisor Bob Nelson voting against it. “More taxes doesn’t necessarily lead to more revenue,” Nelson said.

Members of the community spoke during public comment both in support and opposition of the bed tax increase. The arguments in favor of this increase included using estimated revenue for supporting the county’s public service staff and projects.

“By investing in our staff, we can ensure they have the tools, training, and support needed to continue delivering high-quality services to our residents and visitors alike,” said Laura Robinson, executive director of SEIU Local 620, a union representing Central Coast public employees.

Kathy Janega-Dykes, president of Visit Santa Barbara, said although she agrees with the bed tax’s intention of supporting the hospitality industry, the increase would only put lodging businesses within the unincorporated areas at a disadvantage against others outside of the region.

The next board meeting on June 18 will continue these efforts of establishing an increased bed tax and reintroduce changes to the cannabis cultivation tax to determine if that will also go before voters in November.