City’s fall figures up 23% from same period in 2020
The city of Santa Barbara received $7.3 million in sales tax revenue for the quarter that ended Sept. 30.
This is 23% higher than for the same quarter in 2020.
The city attributed the increase in large part due to increased activity since last year when the pandemic was still in its peak.
Other contributing factors are the effects of higher inflation, continued growth in online sales and the collection of deferred sales taxes, according to a news release.
The deferred sales tax was instituted by Gov. Gavin Newsom as an early COVID-19 relief measure for businesses.
Due to the new COVID-19 omicron variant, the following quarters could reflect a negative impact on economic activity, according to the city.
The September quarter is the first quarter of the city’s fiscal year, and the sales tax revenue budget for the entire fiscal year is $23.2 million.
Transient Occupancy Taxes amounted to $2.2 million in November. This is approximately $990,000 higher than TOT collections in 2020 for the same month, when stricter COVID-19 restrictions and travel advisories were in place. This is also 39% higher than November 2019, but this is largely due to increased daily average rates, which are also 39% higher than in 2019.
The increase in TOT money comes with the recent improvement in the local travel industry. There has been steady improvement in the demand for rooms throughout the fall with the lifting of travel advisories and the broad availability of vaccinations, according to the city of Santa Barbara.
The city has collected $14.8 million through November, the fifth month in the city’s fiscal year. The city’s budgeted funds from TOT is $23.4 million, of which $19.5 million is slated for the General Fund.
The city’s TOT tax rate is 12%. Ten percent goes to the city’s general fund, and the remaining 2% goes to the Creeks/Clean Water Fund.
email: kzehnder@newspress.com
