Santa Barbara sees $7.5 million in sales tax revenue, $2.8 million from hotel stays in October

SANTA BARBARA, Calif. – In October, Santa Barbara saw $7.5 million in sales tax and $2.8 million from hotel stays, falling short by 6.6% on sales tax and missing 5.4% on hotel collections compared to expectations, as reported by Assistant Finance Director Lyndsay Maas.

The city provided the following press release:

Sales Tax Results for the City of Santa Barbara – Quarter Ended September 30, 2023

The City of Santa Barbara received $7.5 million in sales tax revenue during the quarter ended September 30, 2023, which is the first quarter of the City’s fiscal year.

Year to date, total sales tax revenues are coming in about 6.6% below budget. This result reflects softening economic activity amid a persistently high-inflation environment. For fiscal year 2024, the City’s sales tax revenue budget is $30.6 million.

The Sales Tax table can be viewed on the attachment.

Transient Occupancy Tax Results for the City of Santa Barbara – Month Ended October 31, 2023

The City of Santa Barbara collected $2.8 million in Transient Occupancy Taxes (TOT) for October 2023, the fourth month in the City’s fiscal year. Year to date, the City has collected $13.3 million in overall TOT, of which approximately $12.4 million came from hotels and $890,000 from short-term rentals. Year to date, total TOT revenues are coming in 5.4% below budget.

The Transient Occupancy Tax (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 Transient Occupancy Tax table can be viewed on the attachment. 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.