County, Fallbrook TOT revenues increase

The County of San Diego collected $3,403,805.14 of Transient Occupancy Tax (TOT) revenue during fiscal year 2013-14, which was the county’s highest amount since 2007-08.

During 2012-13 the TOT revenue was $2,646,965.75 and the 2011-12 countywide revenue was $2,579,408.47. The county’s 2007-08 collections totaled $3,473,838.85. Fallbrook had $336,550.90 of TOT revenue during 2013-14, an increase from $320,388.34 for 2012-13 and $300,646.45 in 2011-12. The November 2012 closure of the San Luis Rey Downs Resort Hotel reduced Bonsall’s TOT collections from $27,921.09 for 2011-12 to $18,887.15 in 2012-13 to $9,650.78 during 2013-14. TOT revenue for Pauma increased from $28,330.54 in 2011-12 to $32,843.70 during 2012-13 to $39,423.34 for 2013-14.

The TOT, which was reduced from nine percent of the lodging unit rate to eight 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 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. Campgrounds at the eight county parks with such facilities are exempt, as are lodging facilities on Indian reservations or other areas where the County of San Diego has no taxation power.

The exemption of lodging facilities on Indian reservations resulted in TOT revenue for unincorporated El Cajon being eliminated due to a fee-to-trust action for the land which included the Sycuan Resort. El Cajon had provided $167,642.37 of TOT payments during fiscal year 2012-13.

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 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 TOT.

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 calendar quarter. If the facility ceases operation, the payment must be made within 30 days after the operator ceases doing business.

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.

Although Fallbrook’s 2013-14 TOT collections were an increase over the previous fiscal year, the Friendly Village fell from third to fourth among the 23 recognized communities. TOT revenue collected in Rancho Santa Fe increased from $536,619.83 to $928,397.29 while payments in unincorporated Escondido rose from $453,777.46 to $555,498.63. Borrego Springs, whose $260,838.54 of 2012-13 revenue placed fourth that year, took over third place with 2013-14 collections of $399,919.91.

Unincorporated San Marcos increased its revenue from a ninth-place $119,621.53 to a fifth-ranked $353,979.97 due to renovations involving the Lake San Marcos Resort and the Golden Door spa and resort. Julian fell from fifth to sixth place as revenue there declined from $237,366.96 to $224,319.07.

During 2012-13 Ramona ranked 10th with $110,252.86 of revenue, Pauma ranked 11th, Bonsall ranked 12th, and Mountain Empire was 13th at $18,310.63. The elimination of El Cajon’s revenue moved Pauma to 10th, behind the $111,622.70 collected in Ramona, for 2013-14. Bonsall fell to 17th, between the $9,992.34 collected in Pine Valley and the $7,399.80 of Boulevard revenue, and Bonsall’s 2013-14 total ranked last among the 11 recognized communities in the Fifth Supervisorial District.

Countywide first-quarter TOT revenue from July through September declined from $772,160.13 in 2011 to $709,665.02 for 2012 but increased to $882,294.50 in 2013-14. Fallbrook’s first-quarter growth from $87,522.49 to $93,951.16 to $110,991.32 ranked third in the unincorporated county all three years.

Bonsall ranked 12th in 2011 with $8,139.00 and 11th in 2012 at $10,530.96; the closure of the San Luis Rey Downs Resort Hotel reduced 2013 revenue to $6,557.15 which still ranked 11th. Pauma’s $6,045.25 of 2011 revenue ranked 13th, but a drop to $4,443.78 for 2012 lowered the community’s ranking to 14th and the $3,916.29 collected during the first quarter of 2013-14 ranked 15th.

During the past three fiscal years countywide second-quarter TOT collections for October through December increased from $587,971.25 in 2011 to $595,491.21 for 2012 to $767,694.39 in 2013. Fallbrook ranked third behind Rancho Santa Fe and Escondido with $61,318.75 of 2011 collections and $68,075.05 of 2012 payments.

Although Fallbrook’s 2013 TOT revenue increased to $71,500.00, the San Marcos increase from $17,155,53 to $102,480.00 and the Borrego Springs gain from $67,502.74 to $107,625.76 dropped Fallbrook’s rank to fifth for the quarter. Bonsall collected $1,132.00 during the 2013 quarter to rank 18th among the recognized communities; the 2012 revenue of $4,052.16 was 14th and the 2011 quarterly figure of $5,935.00 ranked 12th. Pauma’s $13,014.55 of 2013 quarterly payments ranked 10th; the $9,905.65 collected during the 2012 quarter ranked 11th, and Pauma’s 2011 revenue of $7,204.30 was 12th.

The county’s 2014 third-quarter revenue of $826,818.49 was a gain from $662,292.33 in 2013 and $587,154.90 in 2012. Fallbrook’s January-March lodging created $69,622.12 in 2014, reversing a decline from $66,228.70 in 2012 to $58,610.89 for 2013. The January-March figured ranked Fallbrook fourth in 2012 and 2013 but fifth in the past fiscal year due to the San Marcos increase from $24,732.00 to $84,236.20.

Bonsall’s third-quarter collections dropped from $5,892.38 in 2012 to $700.00 for 2013 to $508.00 during 2014. Bonsall had been ranked 12th in 2012 but 19th, ahead of only the four unincorporated communities with no TOT revenue, in 2013 and 2014. (Unincorporated Chula Vista, Dulzura, and Jacumba had no TOT collections either year; the closure of the Warner Springs Ranch in 2011-12 eliminated all 2012-13 revenue for Warner Springs but that facility’s reopening resulted in 2013-14 Warner Springs revenue.)

Pauma’s third-quarter 2014 revenue of $10,337.36 ranked 10th; Pauma was ranked 11th the previous two years with 2012 collections of $7,666.72 and $7,687.61 of 2013 payments.

On a countywide basis for the fourth quarter covering April through June, payments increased from $632,122.19 in 2012 to $679,517.19 for 2013 to $926,997.76 in 2014. Fallbrook’s 2014 quarterly payments of $114,437.08 ranked fourth. In 2013 Fallbrook collected $99,751.24 of fourth-quarter payments which ranked third, and the 2012 Fallbrook amount of $85,586.51 ranked second behind unincorporated Escondido.

(Rancho Santa Fe fell from first in 2011 to third in 2012 but regained the top position for 2013. The San Marcos quarterly total increased from $26,300.00 in 2013 to $116,502.61 for 2014.)

Bonsall collected $1,453.63 of 2014 revenue during the fourth quarter, a drop from $7,994.70 in 2012 and $3,604.03 during 2013. Bonsall ranked 12th in 2012, 17th in 2013, and 18th for 2014 (Boulevard’s TOT payments increased from $2,175.77 in 2013 to $2,310.82 for 2014; Descanso is the only unincorporated community with 2013-14 TOT revenue which ranked behind Bonsall during the fourth quarter).

Pauma’s $12,155.14 of 2014 fourth-quarter revenue is an increase from $10,806.66 in 2013 and $7,414.27 for 2012. Pauma ranked 10th in 2014, 11th in 2013, and 12th for 2012.