The Battle for Santa Barbara County: Can a New Business Improvement District Elevate the Wine Industry and Boost Tourism?

Santa Barbara County is taking a crucial step towards creating a vintners’ business improvement district that could generate $1.65 million annually and promote the county as a top destination for wine tourists. The district aims to direct wine sales from producers, better market Santa Barbara as a premier wine region against competitors like Paso Robles and Monterey.

However, a similar effort to establish a business improvement district was attempted four years ago but faced opposition from smaller vineyards and was withdrawn in 2020. Concerns were raised about the one percent levy on gross sales that would be imposed by the district, seen as burdensome by smaller operators. Some argued that this levy constituted a new tax under state law, requiring a statewide vote for approval.

The proposed district would require a majority vote among the county’s wine growers, with votes weighted based on each operator’s gross sales. This data would need to be released to a private consultant for the voting process. If over 50 percent of all vintners agree to the improvement district, it would move forward. The Santa Barbara County Vintners Association emphasized the importance of the district for maintaining regional competitiveness.

Despite some concerns about the potential impact of the improvement district on smaller vineyards, with worries that the financial burden may be too high, many believe that it is essential for promoting Santa Barbara County as a leader in the wine market. The debate surrounding the formation of the business improvement district reflects ongoing discussions within the county’s wine industry about how to best promote Santa Barbara County as a top destination for wine tourists while also supporting local producers.