TOT revenue up in Fallbrook, Pauma, Bonsall

The county's Transient Occupancy Tax (TOT) revenue collected from facilities in Fallbrook, Bonsall, and Pauma during fiscal year 2015-16 increased from the fiscal year 2014-15 totals.

Fallbrook lodging facilities contributed $456,682.82 of TOT payments for 2015-16, which is an increase from the $397,049.09 collected during 2014-15. The collection from Pauma increased from $43,985.85 in 2014-15 to $47,726.46 during 2015-16. Lodgers at Bonsall facilities paid $5,679.23 during 2014-15 and $7,212.30 in 2015-16.

The increase in Fallbrook payments, in conjunction with a decrease in unincorporated Escondido revenue from $481,441.86 to $239,148.11, changed Fallbrook's rank among the 24 recognized communities from fifth for 2014-15 to fourth for 2015-16. Rancho Santa Fe had the highest collections for both years with $1,190,180.82 from 2014-15 payments and $1,289,528.52 of 2015-16 revenue. The 2014-15 community totals ranked unincorporated San Marcos second at $687,212.59, Borrego Springs third due to payments totaling $492,798.44, and unincorporated Escondido fourth. Borrego Springs took over the second-highest ranking for 2015-16 with in increase of revenue to $560,606.98 and a drop in San Marcos payments to $534,840.67.

The Escondido and San Marcos decreases contributed to a countywide decline from $4,166,354.90 during 2014-15 to $4,128,274.09 in 2015-16. The Escondido net total includes a repayment from a previous fiscal year due to excessive payment.

Revenue for Spring Valley increased from $19,419.83 to $71,396.57 which dropped Pauma's rank from 10th to 11th. Bonsall's rank remained at 18th; Boulevard revenue declined from $7,254.09 to $6,576.06 while collections from unincorporated El Cajon facilities increased from $27.84 to $8,907.14. The Spring Valley and unincorporated El Cajon increases are attributed to new bed and breakfast facilities in those communities.

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. A higher ownership occupancy rate at the Welk Resort during 2014-15 thus reduced the number of units available for rental to the public, as did Welk unit closures which are part of a multi-year renovation program, so TOT collection for unincorporated Escondido declined from $555,498.63 in 2013-14 to $481,441.86 during 2014-15 although that was still an increase from the 2012-13 amount of $453,777.46. 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 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 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.

Countywide first-quarter TOT revenue from July through September increased from $1,105,521.86 in 2014 to $1,202,593.37 during 2015. In 2014 Fallbrook collected $127,966.22 during the first quarter to rank fourth, Pauma ranked tenth with $9,391.20, and Bonsall collected $2,109.43 to rank 17th. Fallbrook maintained its fourth ranking for 2015 with $149,623.74 of collections, Pauma's quarterly TOT revenue dropped to $9,224.46 although the community was still ranked tenth, and Bonsall's TOT payments of $1,774.38 ranked 16th with Warner Springs inactivity accounting for the position gain.

For the entire unincorporated county the October through December total for 2014 was $864,790.30, and the second-quarter amount increased to $964,063.49 for 2015. Fallbrook's $85,479.09 collected during the second quarter in Fiscal Year 2014-15 ranked fourth, Pauma collected $10,865.94 to rank 10th, and Bonsall had revenue of $1,149.72 for the 18th position. Those rankings were unchanged for the 2015 amounts of $96,434.41 from Fallbrook, $11,987.80 for Pauma, and $1,128.91 collected in Bonsall.

The countywide third-quarter totals for January through March were $1,109,627.45 in 2015 and $1,032,010.03 during 2016. The San Marcos decrease from $222,452.11 to $122,964.32 was the largest quantitative reduction followed by Escondido's drop from $99,396.26 to $76,964.86. Fallbrook's January-March revenues dropped from $85,505.55 in 2015 to $76,614.06 for 2016, which was the third-largest decline. Fallbrook ranked fifth among the county's unincorporated communities in both years. Pauma was tenth in both years with $12,085.21 of 2015 quarterly revenue and $12,771.68 of 2016 collections. Bonsall lodgers contributed $795.84 in 2015 of collections for 18th place while Bonsall's 2016 figure of $2,008.80 in conjunction with the Pine Valley decrease from $2,025.49 to $1,965.14 moved Bonsall to 17th.

Payments for the fourth quarter from April through June changed on a countywide basis from $1,086,415.29 in 2015 to $929,606.30 for 2016 although that includes the Escondido repayment which formally gave that area $85,609.45 of negative net revenue and a San Marcos decrease from $228,951.09 to $135,689.79. Fallbrook's fourth-quarter payments were $98,199.23 in 2015 which ranked fifth. The Friendly Village increased its fourth-quarter collections to $134,010.62 for 2016 to take over fourth from Escondido. Pauma had $11,553.50 of 2015 revenue and ranked tenth, and the 2016 fourth-quarter total of $13,742.52 placed ninth. The 2015 Bonsall total of $1,624.24 ranked 18th, and the 2016 collection of $2,300.31 gave Bonsall 15th place due to the Escondido situation, the Warner Springs drop from $3,972.29 to $968.66, a Boulevard decline from $1,941.70 to $1,799.85, unincorporated Solana Beach inactivity, and new revenue in unincorporated El Cajon which gave the county $2,347.48.