On a countywide basis the Transient Occupancy Tax revenue collected for Fiscal Year 2017-18 was up 4.4 percent from the 2016-17 figure, although late processing resulted in official declines for many back country communities.
TOT payments must be postmarked by the last day of the month following the end of the quarter. If the payment is either late or postmarked by the deadline and not processed by the sixth of the following month the revenue is reported for the quarter after the money was collected. This resulted in no fourth-quarter revenue being reported for Boulevard, Descanso, or Pine Valley for 2017-18.
The countywide TOT collection for 2017-18 was $5,105,749.14. The county collected $4,888,905.47 for lodging during 2016-17.
“I think that speaks to the attractiveness of San Diego as a destination,” said San Diego County Treasurer-Tax Collector Dan McAllister.
McAllister was first elected to the Treasurer-Tax Collector office in November 2002. He is a lifelong San Diego County resident and a Mission Bay High School graduate.
“In many respects every little part of San Diego has something unique about it, and it’s all positive,” McAllister said. “Each and every one of these destinations has its own charm and its own savor.”
The Transient Occupancy Tax, which was reduced from 9 percent of the lodging unit rate to 8 percent in October 2007, is collected from occupants of hotels, motels, bed and breakfast venues, mobile home parks, private campgrounds, and other structures occupied or intended for occupancy by non-residents for lodging or sleeping purposes. A timeshare unit used by an ownership partner or an owner’s guest is not subject to the TOT, although if it is rented to the general public that unit is subject to the tax for that period. If a campground has a membership program a member or a member’s guest is exempt from TOT payments.
Campgrounds at the eight county parks with such facilities are not subject to the TOT, nor are lodging facilities on Indian reservations or other areas where the County of San Diego has no taxing power. A Federal or State of California officer or employee on official business is exempt from the tax as is any foreign government officer or employee exempt under Federal law or international treaty. The tax is not collected if the regular rent is four dollars a day or less or if the lodger receives a free room where the only consideration received is publicity for the lodging site. Units occupied or rented for more than 30 consecutive days are not subject to the tax.
The facility operator must submit payment to the county on a quarterly basis by the last day of the month following the end of the quarter. If the facility ceases operation the payment must be made within 30 days after the operator ceases doing business, and if the facility is sold or its name is changed the county must receive the TOT payments for occupancy prior to the sale or name change within 30 days of the transaction.
If the payment is postmarked by the end of the month following the quarter but not received by the end of that month there is no penalty. The penalty for a payment one month late is 6 percent plus interest, the penalty for payments two month late is 12 percent plus interest, and one percent is added for each subsequent month.
The TOT is collected only from lodging facilities in the county’s unincorporated area, although the revenue is used for the county’s Community Enhancement program and may be given to organizations in incorporated cities as well as unincorporated communities. Community Enhancement funds, which are allocated during the county’s annual budget process, are intended to promote tourism including visitors from other parts of the county.
The community with the highest collection amount is Rancho Santa Fe, which collected $1,646,513.40 for 2017-18 compared to $1,402,129.90 from 2016-17 lodgers. Several factors cause Rancho Santa Fe to lead the county.
The upscale atmosphere creates a combination of higher rates and an appeal to lodgers seeking luxury. “If you’re going to spend an elegant weekend why not pick Rancho Santa Fe?,” McAllister said.
Rancho Santa Fe is also the closest unincorporated community to the Del Mar Thoroughbred Club, which has had a summer meet every year since the end of World War II and a fall meet each year since 2014. In 2014 second-quarter TOT revenue increased from the previous year by 43.8 percent in Rancho Santa Fe and 12.6 percent countywide, while for the first quarter of that year revenue was up 25.4 percent for Rancho Santa Fe and 25.3 percent countywide.
TOT payments in Jamul increased from $21,208.48 for 2016-17 to $30,041.60 from 2017-18 lodgers. Alpine’s full-year revenue was down from $199,317.55 to $197,970.41. Boulevard payments dropped from $9,563.92 to $7,176.85. Descanso collected $4,724.64 for 2016-17 and $2,690.26 of 2017-18 payments. Mountain Empire collections declined from $24,485.97 to $14,854.01. The Pine Valley decrease was from $14,621.27 to $12,613.42.
The county’s first-quarter 2017-18 collections totaled $1,390,914.05 including $58,260.93 of Alpine payments, $2,355.20 of Boulevard revenue, $1,194.39 generated in Descanso, $9,907.66 of Jamul collections, $4,105.27 from Mountain Empire lodgers, and $4,232.95 from Pine Valley lodging facilities. For the 2016 July through September period the countywide total was $1,295,665.74 including $55,906.58 from Alpine, $1,319.17 for Boulevard, $1,505.45 generated in Descanso, $5,434.91 in Jamul, $5,520.88 for Mountain Empire, and $2,517.06 from Pine Valley.
The October through December period resulted in countywide totals of $1,169,171.01 for 2016 and $1,289,142.52 in 2017 including the Rancho Santa Fe increase from $321,629.98 to $422,274.92. Alpine collected $45,415.55 from 2016 lodgers and had 2017 payments of $48,941.81. Boulevard collected $2,194.50 for 2016 and $2,814.73 for 2017. Descanso revenue dropped from $937.34 to $796.84. Jamul facilities paid $2,013.90 from 2016 guests and $7,783.44 for 2017 lodging. Mountain Empire’s quarterly figure was $5,735.40 for 2016 and that dropped to $4,848.12 a year later. Pine Valley contributed $3,169.22 for 2016 and $4,086.91 the following year.
The countywide figure for the third quarter from January 2018 to March 2018 was $1,294,552.48. During those months in 2017 the county generated $1,171,731.01 of TOT revenue. Alpine dropped from $42,349.75 to $37,085.60, Boulevard accounted for $2,890.30 in 2017 and $2,006.92 during 2018, Descanso declined from $923.16 to $699.03, Jamul payments rose from $4,227.40 to $4,808.13, Mountain Empire provided $8,021.49 for 2017 and $5,492.69 in 2018, and Pine Valley generated $4,515.96 during 2017 and $4,293.56 in 2018.
Fourth-quarter countywide revenue, not including what was not processed by August 6, was down from $1,252,328.21 for 2017 to $1,131,140.09 in 2018. The 2017 total included $55,645.67 for Alpine, $3,160.05 collected in Boulevard, $1,358.69 from Descanso lodgers, $8,532.27 provided by Jamul, $5,208.70 of Mountain Empire payments, and $4,515.96 generated in Pine Valley. In 2018 Alpine contributed $53,682.07, Jamul lodgers paid $7,542.37, and Mountain Empire facilities accounted for $407.93.