Hotels thank city of Santa Barbara for postponing bed tax and waiving parking fees during pandemic

SANTA BARBARA, Calif. - Some people call the added tax on hotel bills a bed tax, others call it a transient occupancy tax or TOT. It's a tax that benefits cities and counties that residents don't have to pay.

But the Santa Barbara City Council voted to postpone the payments for several months and to waive some parking fees during the economic downturn caused by the Coronavirus pandemic.

"We are deferring the hotel tax for 90 days, and we are giving everyone a break on the parking fees, the parking assessment and the monthly and annual parking passes," said Mayor Cathy Murillo.

The TOT amounted to about $1.6 million last April during the busy Spring Break season. The parking amounts to a $100-250,000 loss for the city.

Tom Patton of Santa Barbara Hospitality and the Ramada Santa Barbara said they did something similar during recent disasters such as the Thomas Fire and Montecito Mudslide.

"On behalf of the hotel community I want to thank the city of Santa Barbara for their willingness to deer the payment of transient occupancy tax," said Patton.

He said it is a critical time for hotels.

"The ability to help preserve cash flow is a great aid in keeping the doors open and employees working."

Patten said the city Goleta also voted to postpone the hotel tax due date.

Some hotels are closed, while others are partially open with construction that had already been permitted underway.

Keith Nightingale of Echelon Construction said they are practicing social distancing on a job at Motel 6 Santa Barbara on Corona Del Mar road by spreading around on the sight.

"We are managing and yes it is a skeleton crew," said Nightingale.

His workers are staying in hotels and some hotels are offering special rates.

The Ramada by Wyndham of Santa Barbara is offering $89 rooms for essential workers.

Drew Wakefield, The Ramada's Director of Sales and Marketing said he wants doctor and nurses, officers, bankers and other essential workers to have a clean place to go.

He said, "We Are Community" is their motto.

"Fires, floods, storms, earthquakes, and now COVID19, we are here for all essential workers," said Wakefield.

Patton ,who is also the general manager at the Ramada, said, "We look forward to happier times and welcoming visitors to our wonderful city."