Key Takeaways
- 98% of STR and hotel operators in unincorporated Kern County oppose a proposed transient occupancy tax increase.
- Operators cite rising costs, thin margins, and declining bookings due to gas prices as reasons for opposition.
- The current 6% rate has been unchanged since 1992 and is below state and regional averages.
Ninety-eight percent of hotel and short-term rental operators in a small area of California said they were very unlikely to support a hotel tax increase that county officials are considering for the November ballot.
The current transient occupancy tax in a little, nearly unknown town – also known as unincorporated Kern County, which is about 2 and a half hours north of Los Angeles – sits at 6 percent and has been in place since at least 1992.
Despite it being much smaller than Los Angeles or San Fran, the county has 87 hotel or motel certificates and 639 short-term rental certificates.
Operators cited rising costs, rural areas lacking conventions or attractions that draw visitors, price-sensitive tourists, and thin profit margins, according to a report by KGET.
Why operators are pushing back
Business owners argued the travel and tourism industry was being singled out to help ease budget challenges for the county they didn’t create.
They also said it’s poor timing as properties are seeing less bookings due to gas prices and other factors that reduce travelers, Deputy County Administrative Officer Jason Wiebe told supervisors Tuesday.
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If a 6 percent increase is applied, the cost of an overnight stay at a hotel or STR would go up by $7.80 to $9.
The county’s TOT rate is currently lower than the 58 California counties’ rate average, the nine San Joaquin Valley counties’ average, and the 11 Kern cities’ average.
Meanwhile, 90 percent of the tax is paid by visitors who are not from the area.
The overwhelming operator resistance suggests any ballot measure faces steep odds.
County officials say higher rates would generate millions more annually, but Airbnb hosts and Vrbo operators appear convinced the increase would drive away the budget-conscious travelers their rural markets depend on.
