Tax Results for the City of Santa Barbara

The City of Santa Barbara received $6.6 million in sales tax revenue during the quarter ended March 31, 2023, which is 2.5% above the same quarter last year and 11.1% above budget. This result reflects the continuation of robust economic activity amid a higher-inflation environment.

The City has collected $21.5 million through the March quarter, which is the third quarter of the City’s fiscal year. For fiscal year 2023, the City’s sales tax revenue budget is $26.6 million.

The Sales Tax table can be viewed on the attachment.

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

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 of Santa Barbara collected $2.7 million in Transient Occupancy Taxes (TOT) for May 2023. TOT revenues in May 2023 were about 9% above the monthly budget, showing a rebound in hotel activity in line with the expectation of strong spring and summer months. Year to date, TOT revenues are coming in 10% over budget. 

The City has collected $28 million through May, the eleventh month in the City’s fiscal year. The City’s adopted TOT budget for all funds is $28.3 million, of which $23.6 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.