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Board approves formation of Santa Barbara County Wine Improvement District
Summary
The Board of Supervisors adopted a resolution forming a countywide Wine Improvement District that will levy a 1% assessment on direct-to-consumer tasting-room sales to fund destination marketing and industry programs, after staff reported petitions representing nearly 60% of winery sales in favor.
The Santa Barbara County Board of Supervisors on Feb. 11 adopted a resolution forming the Santa Barbara County Wine Improvement District (WID), clearing the final step in a multiyear process led by the Santa Barbara Vintners Association.
Lisonbee Laslett, CEO of the Santa Barbara Vintners Association, told the board the WID would assess 1% on direct-to-consumer retail sales at tasting rooms and use proceeds for marketing, brand awareness, government and industry education, and events. "The assessment structure is 1% on all direct to consumer sales that incur California retail sales tax," Laslett said during the presentation.
County staff said they verified 126 petitions representing almost 60% of winery sales in the jurisdiction, which surpassed the weighted majority threshold required for formation; protest petitions represented about 1.2% of sales. Steve Pepe, speaking for a local vineyard, urged the board to require clearer legal protection for the county and suggested conditioning approval on a bond or that the WID pay legal defense costs should litigation arise. County staff said indemnity language would be included in the agreements between the county and the owners association.
The board voted to adopt the resolution of formation and to proceed with the necessary collection and administration steps, including a prospective contract with HDL for collection services and an owners'association agreement with the Santa Barbara Vintners Association to run the district.
What happens next: Staff will return with a collection-services contract with HDL and an agreement with the Vintners Association that will specify county staffing reimbursement and indemnity terms. The WID would begin collections once the collection mechanism and owners''association agreements are in place.
