City of Santa Barbara considers transfer tax revenue measure for ballot

SANTA BARBARA, Calif. Santa Barbara City Council members are considering a revenue measure to put on the November Ballot.

During Tuesday's council meeting city staff projected options for taxing real estate transfers and increasing the transient occupancy tax (TOT) by two percent or from 12-14 percent.

A number of hotel general managers and tourism professionals spoke out against TOT saying it can drive tourists to other destinations.

And real estate professionals spoke out against transfers, that could amount to $10-11 million a year, at a time when sales compared the last few years appear flat.

The current tax is .55 per $1,000.

After the public comments council members directed staff to only look into at transfer tax increase options.

The council will take up the issue again in late June or early July.

If approved the item would appear on the November 3, 2026 ballot.

If voters approved the measure it would be implemented on January 1, 2027.