Solvang council votes to join Santa Barbara County Wine Improvement District

The Solvang City Council voted Jan. 27 to adopt Resolution No. 251278, granting the County of Santa Barbara consent to include the city in the proposed Santa Barbara County Wine Improvement District (SBCWID).

The district would levy a 1% assessment on wineries' direct-to-consumer retail sales — including tasting-room sales, wine-club charges, event sales, food and merchandise — and use the revenue for marketing, public relations, events and industry and government education, proponents said. The county is the lead jurisdiction for formation; organizers told the council the district would begin collections April 1 if the county finalizes formation at a Feb. 11 meeting.

Why it matters: Supporters said a dedicated, regionwide marketing fund will attract more visitors to wineries and area businesses and amplify Solvang’s role in the Santa Ynez Valley tourism economy. Opponents or hesitant speakers at other jurisdictions have carved out their cities; Lompoc recently voted not to participate, a development proponents described as a risk to unified regional promotion.

Association CEO Allison Laslett, introducing the plan, described the assessment as designed for easy auditing and collection. “The 1% was chosen because that is the amount of tax that comes back from the state sales tax to Santa Barbara County, which makes it an auditable number,” Laslett said.

Laslett told the council the Santa Barbara Vintners, a 40-year industry association, currently raises about $400,000 a year in dues and $250,000–$300,000 in events revenue. She said the association expects SBCWID collections to total roughly $1.5–$1.6 million annually, though she cautioned first-year collections could be lower given recent wine-market trends.

Public comment at the council meeting was overwhelmingly pro-district. Dozens of winery owners and representatives — including small producers who said they lack marketing resources and larger operators who said pooled funding would amplify the region — urged the council to consent. Speakers identified themselves as owners or representatives of Dreamcoat Wine Company, Sea Grape Wine Company, Dragonet Cellars, Sarlos and Sons, Gainey Vineyards, Dierberg and Starlane Vineyards, Carhartt Family Wines, Cali Love Wine and others. Shelby Sims, representing Visit Santa Ynez Valley and the local hotel association, told the council the countywide bid mirrors a hotel assessment Visit SYV helped form and “doesn't cost the city a dime.”

Process and collection: Proponents said the county will use HDL, a private tax-collection contractor the county already uses, to gather the assessment. Organizers said using the same base data as sales tax reporting simplifies collection and auditing for wineries and the county. Under state rules cited by presenters, wineries may choose to absorb the assessment or pass it to consumers; if passed through it would appear on receipts as a separate line above sales tax.

Council action: After discussion the council approved the consent resolution by roll call: Council member Infante — yes; Mayor Pro Tem Claudia Arona — absent; Council member Smith — yes; Council member Elizabeth Arona — yes; Mayor David Brown — yes. The motion passed 4-0.

Next steps: Organizers will return to the County of Santa Barbara on Feb. 11 for final formation votes and, if formed, the district would begin collections April 1. Council members and staff said Solvang will not incur administrative cost from the district; the county will lead formation and collection.

Clarifying details: the assessment is 1% of direct-to-consumer retail sales only (wholesale sales are excluded); collection is handled by HDL; formation requires county action following city consents; Lompoc declined to participate and will be treated as carved out if the county forms the district without that city.

Observers and industry participants said the district is intended to create stable, predictable funding for regionwide marketing and visitor outreach and to support smaller wineries that currently lack dedicated marketing budgets.