Guadalupe voters will decide in November whether visitors staying overnight in the city should pay a higher tax.
Measure J-2026 would double Guadalupe’s transient occupancy tax (T.O.T.) from 6% to 12%. The tax would apply to visitors staying in short-term rentals, RV parks and campgrounds.
Guadalupe City Administrator David Trujillo said the proposed increase would bring the city’s tax rate closer to those of other communities in the area.
“I think somewhere in Solvang or Buellton, they’re up to like 16 or something like that, so we’re just trying to get it up with the majority standard,” Trujillo said.
The city currently receives about $10,000 to $15,000 annually from its 6% transient occupancy tax, according to Trujillo.
He said the city is aware of roughly five to 10 short-term rentals, including Airbnb properties, that could be affected by the proposed increase.
Trujillo said the additional revenue could help support community infrastructure, parks and public safety.
“The forecast would look like $30,000-ish on the high end,” Trujillo said. “You know, if something else comes in, we could see that grow exponentially. If you had, like, a 100-room hotel occupied 50%, you know, we’re looking at $100,000 a year or something like that.”
The proposed tax would not increase local residents’ property or sales taxes.
However, some Guadalupe residents said they are concerned the higher tax could make short-term rentals more expensive for visitors.
Simon Lopez, a Guadalupe resident who lives next to an Airbnb host, said the additional tax, combined with other fees, could drive up rental prices and potentially lead some property owners to stop operating short-term rentals.
“I think it’s obviously harsh. I don’t think it’s fair, but it may cause a lot of Airbnb people to switch, you know, sell their home or renting the home possibly,” Lopez said.
Other residents said they believe the additional revenue could benefit the community.
“This community definitely needs some tax revenue,” said Guadalupe resident Enrique Ortiz. “Honestly, a lot of people that live here don’t spend here, so any way we can get more taxes, I can see that point.”
The measure would also clarify which types of lodging are subject to the transient occupancy tax.
“This time we’re spelling it out at 30 days or less,” Trujillo said. “We’re including RV parks and campgrounds, something that we hope will come in the future.”
If approved by voters, the measure would require at least 51% of the vote to pass, according to Trujillo. The increased tax could take effect in January if approved
