High Times for City Bed Tax

Nearly a million more dollars came to the City of Santa Barbara than expected from its transient occupancy tax (TOT), or bed tax. The fiscal year, which ended in June, was marked by a 10.3 percent growth in bed taxes, which derive from a 12 percent surcharge on the cost of hotel, motel, bed and breakfast, or other temporary visitor lodging. Altogether, the city got $1,785,905 from TOTs in June, an increase of 6.7 percent over the previous June. The fiscal year ended with more than $18.5 million in bed taxes, surpassing the expected $17.6 million. Of that, 10 percent is unrestricted revenue, and 2 percent goes to restoring creeks and improving water quality.

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