Fiscal Impact Statement for Measure B
Should the proposed ordinance amendment be approved by the voters, the additional 1% and 3% increase in transient occupancy tax would result in an estimated additional $2.3 million in General Fund revenue annually which would be available to pay for general County services and programs. The proposed tax would begin on January 1, 2023, and would remain in place until changed by voters. Actual taxes collected may vary from year to year depending upon economic conditions and the number of available lodging locations.
Measure B applies only to persons who pay to stay at lodging facilities in the unincorporated area of the County. Since the tax is imposed primarily upon visitors, it does not impose a local tax burden on residents of the County of Santa Cruz.
The transient occupancy tax in the unincorporated area of the County generated an annual average of $7.0 million since the fiscal year ended June 30, 2012, for the County General Fund, with a low of $4.5 million during fiscal year 2012-13, and a high of $10.2 million during fiscal year 2020-21. Revenue from the transient occupancy tax is the County’s third largest source of discretionary tax, following retail sales tax, with largest revenue source being Property tax.
County of Santa Cruz