Santa Barbara’s short-term guest tax falling short of budget expectations

SANTA BARBARA, Calif.– The City of Santa Barbara collected $2.9 million in May of this year from Transient Occupancy Taxes, but the year-to-date revenues from the tax on guests at local commercial lodging businesses are currently running 3.1 percent below budget.

According to the City of Santa Barbara, a total of $28.8 million has been collected from Transient Occupancy Taxes (TOT) for this fiscal year of which $26.4 million came from hotels and $2.4 million from short-term rentals.

The City's adopted TOT budget is $33 million with $27.5 million budgeted to the City's General Fund detailed the City of Santa Barbara in a press release about the May shortfall.

May is the eleventh month in the City's fiscal year noted the City of Santa Barbara.

Santa Barbara's TOT rate is 12 percent of which 10 percent is dedicated to the General Fund and the remaining 2 percent goes to the Creeks/Clean Water Fund explained the City.

Transient Occupancy Taxes are levied on guests at any hotel, inn, motel, or other commercial lodging establishment who stay less than 30 days, hence the 'transient' description in the tax name.

For more information about TOT collections for this current fiscal year, check out this TOT Table from the City of Santa Barbara.