Santa Barbara County’s visitors will soon see a higher bill at the end of their stay as local voters approved hotel bed tax increases throughout the region.
In the face of slowed budget growth at the county level and high impacts from tourism in the Santa Ynez Valley region, Buellton, Solvang, and Santa Barbara County put a 2 percent transient occupancy tax (TOT) on their respective ballots to boost funding streams.
TOT is charged to visitors who pay the rate when staying at hotels, motels, or short-term rental properties for 30 days or less. Each jurisdiction will see a 14 percent tax rate, bringing them to the same rates as Beverly Hills, Los Angeles, Oakland, and San Francisco.
Shelby Sim, the president and CEO of Visit the Santa Ynez Valley, told the Sun that “as destination makers, we are never happy to see our visitors’ taxes increased.”
“But if it has to be done, we are satisfied that it was increased evenly across Solvang, Buellton, and the county, making it an even playing field,” Sim said in an email.
All of the measures passed the required 50 percent plus one vote threshold in order to pass. The county certified its elections on Dec. 3 and must send its certification to the Secretary of State by Dec. 6. Overall, more than 187,000 residents cast their ballots this election, which is about 77 percent of the county’s registered voters.
According to certified results, Buellton’s measure garnered 54 percent voter approval (1,364 votes) and its urban growth boundary measure—which will allow the city to expand its limits to make way for more housing—received 58.9 percent of voter approval (1,549 votes). City Manager Scott Wolfe didn’t respond to request for comment before the Sun’s deadline.
In the unincorporated areas of the county, Santa Barbara County’s TOT saw 67 percent of voters support the initiative (115,336 votes). The county said it will help generate more revenue, as its budget growth has been outpaced by increased salaries, employee benefits, and internal services.
“The strong support in this measure reflects the community’s shared commitment to maintaining and supporting services such as 911 emergency response, infrastructure maintenance, and programs to address homelessness,” Public Information Officer Kelsey Gerckens Buttitta told the Sun in an emailed statement. “With rising operating costs and projected budget deficits, we are grateful for the community’s vote of approval to secure additional revenue by increasing the transient occupancy tax.”
Solvang saw strong support from voters, also receiving 67 percent voter approval (2,077 votes). Tourism brings in nearly half of Solvang’s general fund revenue—with a million and a half visitors per year.
The 2 percent increase will help the 6,000-person city stretch those dollars to make road and sidewalk improvements; maintain city parks and adult, youth, and senior recreation programs and city-funded events; and provide traffic safety and parking relief, City Manager Randy Murphy told the Sun in a statement.
The Solvang City Council will certify its election results during its Dec. 9 meeting, and the additional 2 percent will be effective Jan. 1.
“Once enacted, Measure E-2024 will give Solvang local control over $800,000 to $1 million per year of new funds for local needs—allowing Solvang to be self-reliant and requiring local tax dollars to be spent for Solvang residents and ensuring that no money can be taken by Sacramento,” Murphy said.
This article appears in Dec 5-15, 2024.