Before beginning operations, all lodging providers must register with the City for a business license. Every business operating a lodging facility is responsible for collecting the 12% transient tax from guests. Hotel and STVR operators should submit completed remittance forms and payment for the preceding month's receipts to the City. You may remit payments via ACH/wire or checks payable to the City of Goleta. If you close or sell your business, a final return and payment are due immediately.

Please submit forms via email to accountsreceivable@cityofgoleta.gov or mailed to City Hall.

Short Term Vacation Rental - Transient Occupancy Tax Return

Hotel & Motel - Transient Occupancy Tax Return

Penalties: Failure to remit taxes on time will result in an initial 10% penalty, with an additional 10% penalty if the delinquency continues for longer than 30 days. Interest is also charged at a rate of 0.5% per month. If the City must estimate your tax due to a failure to report, you will receive a notice of assessment. You have 10 days from the notice date to request a hearing and 15 days to appeal a final determination to the City Council. Non-payment involving fraud may result in an additional 25% penalty.

Exemptions: Certain occupants may be exempt from the TOT, including foreign government officials or guests provided lodging at no charge. To claim an exemption, a city-prescribed form must be signed under penalty of perjury at the time of stay.

Exemption Claim Form

Refunds: If a tax/assessment has been overpaid or erroneously collected, operators or guests may file a completed claim form for a refund within three years of the payment date.

TOT Refund Claim Form

*City TOT Always Applies To:                                                 
• Room Rental Revenue
• Resort / Destination Fees
• Additional Occupancy Fees
• Mandatory Cleaning Fees
• Non-Refundable Deposits
• Cancellation / Group Attrition Charges
• Early Arrival / Late Departure Fees
• No-show Fees
• Pet in Room / Pet Cleaning Fees
• Rollaway Bed/Crib Fees
• In Room Equipment Rental Fees
• Mandatory (Non-Discretionary) Parking Charges 

*This list is not exhaustive and other charges/fees may be applicable.

TBID & Visit Santa Barbara 

The Santa Barbara South Coast Tourism Business Improvement District (TBID) Assessment, developed by Visit Santa Barbara in conjunction with Santa Barbara South Coast lodging businesses, is an assessment district that provides benefits to its payors by funding tourism programs that support assessed businesses. TBID is assessed at the rate of 2% of the monthly gross room revenue. The TBID Assessment does not apply to any other guest charges or complimentary rooms. For more information related to the TBID assessment, contact Visit Santa Barbara at (805)966-9222. 

SBSC TBID Assessment Only Applies To:
• Room Rental Revenue

TBID - Visit Santa Barbara Modification Letter to Hotels & Short-Term Rentals (2023)

TBID - Visit Santa Barbara Letter to Hotels & Short-Term Vacation Rentals (2022)

Resolution No. 22-12

What is the current TOT & TBID rates?
The tax rate is 12% of the gross receipts charged, and the assessment rate is 2% of room rental revenue.

Who is considered a "transient"?
Any guest paying for lodging of 30 consecutive days or less. On the 31st day, the guest is generally no longer considered a transient. Certain government officials may also be exempt from tax collection. 

Does the tax apply to all types of lodging?
Yes, includes any structure or portion of a structure intended for occupancy by transients for dwelling or lodging. This includes any hotel, inn, motel, or other commercial lodging establishment, as well as short-term vacation rentals or home shares.

What if a guest stays for free?
Any person allowed occupancy without rent is exempt from the tax.

When are tax returns due?
Returns and payments are due before or on the last day of the month following the end of the prior month. For example, February returns would be due by the end of March. If the due date falls on a Saturday, Sunday or Holiday, the next business day becomes the due date. Postmarks by the postal service are acceptable, but dates from meters will not be accepted. Payments are considered delinquent if they are postmarked after the deadline.

What are the penalties for late payment?
An initial 10% penalty is added for delinquency within 30 days. If you have not paid after 30 days of delinquency, an additional 10% is applied. Interest would be applied at 0.5% rate per month of delinquency.

How long should an operator keep records?
Operators must preserve all relevant financial records for three years. These records may be subject to audit by the City of Goleta.

Will online booking platforms (e.g. Airbnb, VRBO, Booking.com, etc.) collect the tax and assessment on a short-term vacation rentals behalf?

 According to GMC 5.08.115, online booking platforms should collect the transient tax on behalf of operator if the platform facilitates in collecting rent from the guest. In some cases, a platform may only collect a portion of the tax (Transient Occupancy Tax) but might not collect the Tourism Business Improvement District (TBID) assessment. 

Operators should log in to their hosting platform accounts to verify exactly how much tax/assessment was collected and remitted for their specific listings. If the platform does not collect the full amount due, the operator is required to remit the remaining balance to the City. Please report on any platforms that do not adhere to the tax collection requirements

How can I pay TOT & TBID?