The county’s Transient Occupancy Tax revenue collected from facilities in Fallbrook during Fiscal Year 2016-17 decreased from the previous year’s total although 2016-17 Bonsall and Pauma collections increased from the 2015-16 figures.
Lodging facilities in Fallbrook contributed $445,830.82 of TOT revenue during Fiscal Year 2016-17 compared to $456,682.82 of collections during 2015-16. Pauma’s TOT generation increased to $50,838.13 from $47,726.46 while Bonsall’s 2016-17 amount of $9,270.71 is an increase from the $5,679.23 collected during 2015-16.
On a countywide basis $4,888,905.97 of TOT revenue was generated during Fiscal Year 2016-17. The county obtained $4,128,274.09 during Fiscal Year 2015-16.
Fallbrook’s annual total ranked fourth among the 24 recognized communities in 2015-16 and fifth in 2016-17. Unincorporated Escondido’s $239,148.11 net amount during 2015-16 reflects a repayment from a previous total due to excessive payment in a prior year, and Escondido revenue in 2016-17 was $446,681.93.
Rancho Santa Fe had the highest collection amount in both years with $1,289,528.52 in 2015-16 and $1,402,129.90 during 2016-17. Borrego Springs had second-ranking revenues of $560,606.98 for 2015-16 and $715,439.43 for 2016-17. Lodgers in unincorporated San Marcos provided $534,840.67 during 2015-16 and $607,778.44 in 2016-17. Julian had the sixth-place totals both years with revenue increasing from $259,543.38 to $317,004.48.
Pauma ranked 11th both in 2015-16 and in 2016-17, while Bonsall ranked 18th both years. Although Boulevard revenue increased from $6,576.06 to $9,563.02, annual revenue for unincorporated Solana Beach decreased from $13,248.00 to $7,064.48. A house being used as a bed and breakfast had provided all of the TOT revenue for unincorporated Solana Beach and that home was sold in October 2016, so Solana Beach had no TOT revenue for the final three quarters of Fiscal Year 2016-17.
The TOT, 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 for 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.
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.
On a countywide basis the first quarter of Fiscal Year 2016-17 generated $1,295,665.74 of TOT revenue. Between July 2016 and September 2016 Fallbrook lodgers contributed $139,830.28, Pauma was responsible for $6,136.20, and Bonsall provided $3,072.10. The countywide $1,202,593.37 revenue for the first quarter of 2015-16 included $149,623.74 generated by Fallbrook facilities, $9,224.46 from Pauma, and $1,774.38 collected in Bonsall. Fallbrook’s total ranked the Friendly Village fourth both years, Pauma dropped from tenth to twelfth, and Bonsall was 16th both in 2015 and 2016.
Lodgers in October, November, and December gave the county $1,169,175.01 of TOT funding for the second quarter of the 2016-17 fiscal year, which is an increase from the 2015-16 quarterly amount of $964,063.49.
During 2016 Fallbrook provided $102,046.14, Pauma contributed $15,879.51, and Bonsall lodgers paid $3,485.19. The 2015 amounts were $96,434.41 for Fallbrook, $11,987.90 collected by Pauma facilities, and $1,128.91 paid by Bonsall lodgers. Fallbrook’s total ranked fourth both years. The success of the bed and breakfast industry in Spring Valley increased that community’s second-quarter totals from $9,475.47 in 2015 to $70,656.83 for 2016, which dropped Pauma from tenth to eleventh in the quarterly ranking. Bonsall’s ranking improved from 18th to 14th as the community passed Boulevard, Jamul, and Pine Valley as well as unincorporated Solana Beach.
The third-quarter countywide figure for January 2017 through March 2017 was $1,171,731.01. Fallbrook generated $74,432.59 of that, Pauma had $12,894.00 of TOT payments, and Bonsall provided $1,315.64. During the third quarter of 2015-16 the county’s revenue was $1,032,010.03, including $76,614.06 from Fallbrook, $12,771.68 collected in Pauma, and $2,008.80 generated in Bonsall. Fallbrook had the fifth-highest total both in 2016 and 2017, Pauma dropped to 11th due to the Spring Valley increase, and Bonsall retained 17th with Pine Valley’s increase from $1,965.14 to $4,515.96 accounting for the lack of change in Bonsall despite the Solana Beach revenue elimination.
During the fourth quarter of 2016-17 a total of $1,252,328.21 was obtained from lodgers in the entire unincorporated county. Fallbrook lodging facilities paid $129,521.81, Pauma provided $15,928.42, and Bonsall had $1,417.78 of TOT contributions. The county’s net revenue of $929,606.30 for April 2016 through June 2016 reflects the Escondido repayment.
During the 2015-16 fourth quarter $134,010.62 was collected by Fallbrook facilities, $11,553.50 was paid by Pauma lodgers, and $2,300.31 was obtained from Bonsall. Unincorporated Escondido had $106,968.49 of fourth-quarter 2016-17 payments, so Fallbrook maintained fourth place in the rankings while Pauma dropped from ninth to tenth due to the Escondido payments. Bonsall’s ranking declined from 15th to 18th as the result of Warner Springs and Boulevard gains as well as the Escondido figure and the lack of fourth-quarter 2015-16 income for the Solana Beach bed and breakfast.