Santa Barbara County Hotel Tax, Measure O (November 2014)

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A Santa Barbara County Hotel Tax, Measure O ballot question was on the November 4, 2014 election ballot for voters in Santa Barbara County, California. It was defeated.

Measure O would have increased the county's transient occupancy tax, know as a hotel tax, from 10 percent to 12.5 percent. At 10 percent, the tax brought in $7.5 million in revenue in the 2013-2014 year. It was estimated by the county auditor that Measure O would have provided an increase in this revenue stream by $1.9 million per year. The county's hotel tax, money from which goes into the Santa Barbara general fund, is the county's third largest revenue stream, after property taxes and sales taxes.

The county board of supervisors put the tax on the ballot with a four against one vote. Supervisor Peter Adam was the sole dissenter.

Election results

Santa Barbara County, Measure O
Result		Votes	Percentage
d No		61,110	58.17%
Yes		43,947	41.83%

Election results via: Santa Barbara County Elections Office

Text of measure

Ballot title

The official ballot title for Measure O:

“

Ordinance amending Section 32-12 of the Santa Barbara County Code to increase the transient occupancy tax rate to 12.5%

”

Fiscal impact

The following fiscal impact statement for Measure O was prepared by the county auditor-controller:

“	In 1963, local governments were granted the power to tax the privilege of occupying a room or living space in a hotel, motel, inn tourist home, or other lodging when rented for 30 days or less. The Transient Occupancy Tax (also commonly referred to as TOT or hotel bed tax) is collected by the lodging operator in the unincorporated area of the County then remitted to the County Treasurer for deposit as a general revenue to the County General Fund. The Measure would increase the existing County of Santa Barbara unincorporated area Transient Occupancy Tax rate from 10% to 12.5%. The current transient occupancy tax rate of 10% of the daily rent generated $7.5 million in fiscal year 2013-2014 for the County. If this measure is approved the tax rate would increase to 12.5% and is estimated to generate an additional $1.9 million annually. the total of the tax collected changes on an annual basis as a result of increases or decreases in lodging rates or lodging occupancy. The revenue generated by the transient occupancy tax is considered general revenue for the County General Fund. This tax source is the third largest discretionary General Fund tax source, following property taxes and retail sales taxes. This revenue is expended on general County government services and capital needs for public safety, law and justice, health services, public assistance, community resources, public facilities, legislative programs, administrative and general government services. (quote)	”
—Robert W. Geis, Santa Barbara County Auditor-Controller

Support

Supporters

The following individuals expressed support of Measure O during a board of supervisors meeting:

• Kathy Janega-Dykes, executive director of Visit Santa Barbara, encouraged the county supervisors to push for a higher hotel tax.
• Mary Harris of the group Visit Santa Ynez Valley, which represents 33 hotels, expressed support of Measure O.
• Joe Armendariz of the Santa Barbara County Taxpayers Association also said the group supported the move.

The four county supervisors that voted to approve Measure O for the ballot were:

• Supervisor Steve Lavagnino
• Supervisor Salud Carbajal
• Supervisor Doreen Farr
• Supervisor Janet Wolf

Arguments in favor

In general, supporters of hotel taxes argued that taxing for transient occupancy is a great way to provide revenue without taking money out of the pockets of local taxpayers or the local economy.

Supporters of the Measure O tax argued that the hotel tax in surrounding areas is higher than the county's 10 percent and that Measure O would "level the playing field" among the hotels and motels in the entire valley. Supporters also pointed towards cities that have raised their hotel taxes without damage to tourism or the number of visitors per year.

Writing on behalf of the four county supervisors that approved this tax, Supervisor Steve Lavagnino argued that Measure O is a reasonable increase from 10 percent to 12.5 percent to be paid only by visitors of Santa Barbara County, rather than local residents or business owners. He also stated that the small increase in taxes could allow for important improvements to services throughout the whole county.

Opposition

Opponents

Supervisor Peter Adam was the sole dissenter when the county supervisors voted on whether or not to ask voters for this tax increase.

The following individuals signed and submitted arguments in opposition to Measure O:

• Victor Tognazzini, a farmer
• Gregory Gandrud, Chairman of the Santa Barbara County Republican Party
• David R. Stockdale, a businessman
• Douglas J. MacKenzie, M.D.

Arguments against

In general, opponents of hotel taxes argued they could damage the tourism business of the city or county by boosting hotel prices and giving a competitive advantage to hotels in other places.

Adams refused support of the tax increase unless the revenue was earmarked for a special tax purpose rather than going into the general fund. A special tax would have required a two-thirds (66.67%) vote at the polls for approval. Adams held the opinion that, without a specific purpose, "the money gets thrown in the black hole of the general fund." He went further to suggest that economic development should be the goal of a special tax increase. He said, "What will make a huge difference is making a commitment to spend the money on economic development. If it was up to me I would propose a special tax and make a commitment with the money."

Opponents also argued that California has the highest state sales tax and the second highest gasoline tax in the nation and that the county should avoid taxing its residents even more. Critics insisted that the county needs reform to encourage businesses and jobs, pension reform and reasonable public employee salaries rather than new taxes that could cripple businesses.

See also

• Hotel taxes in California
• Local hotel tax on the ballot
• Santa Barbara County, California ballot measures
• November 4, 2014 ballot measures in California

External links

Suggest a link

• Santa Barbara County Elections Office website

Additional reading

• Santa Barbara Independent, "Supes Spar Over Hotel Tax Increase," August 6, 2014
• Noozhawk, "County Supervisors Considering Bed-Tax Increase for Unincorporated Areas," March 31, 2014