Want to see economic evidence of the California Doom Loop? Look at the tourist haven of Santa Barbara.
“Year to date, the city has collected $20.9 million in overall TOT, of which some $19.3 million came from hotels and $1.6 million from short-term rentals.
Year to date, total TOT revenues are coming in 4.5% below budget. February TOT revenue was 11.6% below budget, according to the TOT Tax Table.
That means fewer tourists are coming to town. My guess is that you will also see a reduction in sales tax collections, since tourists spend lots of money on gifts, tours, restaurants, etc.
Santa Barbara Posts Transient Occupancy Tax Results for February. Down. Big Time
Noozehawk, 3/22/24 https://www.noozhawk.com/santa-barbara-posts-transient-occupancy-tax-results-for-february/
TOT revenue for the month was 11.6% below budget
The city of Santa Barbara collected $1.8 million in Transient Occupancy Taxes (TOT) for February 2024, the eighth month in the city’s fiscal year.
Year to date, the city has collected $20.9 million in overall TOT, of which some $19.3 million came from hotels and $1.6 million from short-term rentals.
Year to date, total TOT revenues are coming in 4.5% below budget. February TOT revenue was 11.6% below budget, according to the TOT Tax Table.
The TOT is a tax on transient guests staying in any hotel, inn, motel, or other commercial lodging establishment for a period of less than 30 days.
The city’s adopted TOT budget for all funds is $33 million, of which $27.5 million is budgeted in the General Fund.
The city’s TOT tax rate is 12%, of which 10% goes to the city’s General Fund and the remaining 2% goes to the Creeks/Clean Water Fund.
