Santa Barbara City Council Considers Tax Measures for November Ballot

City looks to increase revenues with potential taxes on tourism or property sales

Published on Mar. 4, 2026

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The Santa Barbara City Council is considering placing two tax measures on the November ballot - a potential increase in the Transient Occupancy Tax (TOT) from 12% to 14%, or a hike in the real estate transfer tax on properties sold for more than $3 million. The city is facing a projected $14 million budget deficit for the next fiscal year and is seeking ways to increase revenues, though polling shows the tax measures may not reach the two-thirds voter approval threshold required.

Why it matters

Santa Barbara relies heavily on tourism revenue, and increasing the TOT could impact visitor demand. The real estate transfer tax would primarily affect high-end property sales, which can be volatile. Both measures face opposition from the hospitality and real estate industries, who argue the tax increases would hurt their sectors. The council's decision on which measure to pursue could have significant implications for the city's budget and economic landscape.

The details

The city council is considering two tax options - increasing the TOT from 12% to 14%, or raising the real estate transfer tax on properties sold for over $3 million from 55 cents per $1,000 to $9.50 per $1,000. A poll found 57% support for the TOT increase and 42% for the property transfer tax, both falling short of the two-thirds threshold. The council is leaning towards the property transfer tax as the preferred option, though they may pivot to the TOT depending on potential legal developments at the state level.

  • In December 2025, a poll of over 520 likely city voters was conducted.
  • The city council discussed the tax measures at a meeting on Tuesday.
  • The council needs to approve one of the two options by July in order to make the November ballot deadline.
  • If a tax measure is approved by voters, it would take effect in January 2027.

The players

Santa Barbara City Council

The governing body of the city of Santa Barbara that is considering the tax measures.

Adam Sonenshein

A researcher at FM3 Research, the firm that conducted the poll on the tax measures.

Keith DeMartini

The city's finance director, who outlined the details and potential revenue from the real estate transfer tax increase.

Kathy Janega Dykes

The president and CEO of Visit Santa Barbara, who warned that a higher TOT rate could reduce visitor demand.

Brian Johnson

The CEO of the Santa Barbara Association of Realtors, who expressed concerns about additional costs for property owners.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee (Instagram)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.