The San Luis Obispo County Tourism Business Improvement District will remain in business for another year.
With virtually no opposition or discussion from the county’s tourism industry, the county Board of Supervisors on Tuesday renewed a 2 percent tax on hotel stays that has generated more than $8 million.
Half of the money is used for marketing and promoting the CBID area, and the other half is used to promote tourism in the local area from where the funds are collected. The district covers the entire coastal area of the county as wells as the inland areas of the southwest corner of the county.
The tax was approved after a protest vote of tourism businesses in the district fell far short of the 50 percent needed to block the tax. Only six businesses, or 0.22 percent, of the tourism businesses filed written protests.
The tax has been in existence since 2009. It is applied to 885 units of hotels, motels, bed-and-breakfasts and vacation rentals.
The tax must be renewed annually, said Nikki Schmidt of the county Administrative Office.
“County staff neither advocates nor opposes the renewal of the CBID ordinance,” she said in a staff report. “The lodging industry will determine the value of the assessment by their continual support of the CBID.”
Since its inception in 2009, the tax revenues have grown by nearly 50 percent, Schmidt said.