Spending the night in a Santa Barbara County hotel could be getting a little pricier.
"I don’t know anywhere that’s got 14%, which seems significant to me," said Simon Dunstan, manager and co-owner of Cheshire Cat Inn.
Dunstan has been welcoming visitors for 40 years and says guests notice the added fees.
"I don’t want to say they are floored by it but are surprised by the amount of tax they have to pay," Dunstan said.
Guests could soon see even more of an increase as the county's tax board published a letter earlier this month proposing an increase in the Transient Occupancy Tax from 12% to 14%. Dunstan says this could have unintended consequences.
"The concern about the TOT going up in general is that we become arguably less competitive as a destination," Dunstan explained.
For perspective, San Luis Obispo County’s TOT is 9% and Ventura County is at 8%, according to county websites.
At Santa Barbara’s current 12% TOT, a $250 room costs an extra $30 a night, totaling $280 without additional fees. At 14%, the room will cost $285 a night.
"Our tourists also require city services to support them, so it is appropriate for tourists to pay taxes," said Keith DeMartini, City of Santa Barbara Finance Director.
According to a tax board letter, increasing the county TOT may generate $2.9 million in revenue, impacting 24 hotels and 520 short-term rental properties in unincorporated areas of Santa Barbara County. A second reading of the proposed increase takes place next month and if approved, the proposal will go on the general election ballot in November.
"If a TOT measure were to be put on the ballot, the residents of Santa Barbara would be voting on it, but they don't pay that tax. It's paid by people that come and visit and stay in a short-term rental or they stay in a hotel," DeMartini said.
The county last increased the TOT from 10% to 12% in 2016.
