The COVID-19 pandemic has brought the world to an economic standstill. The city of Solvang has seen its tax revenue drop by $500,000 per month as tourism has ceased.
Before the COVID-19 outbreak, Solvang’s taxable sales from retail businesses and restaurants, combined with taxable stays in the city’s hotels, pumped about $180 million into its economy every year. Had this not been interrupted by the current pandemic, it would have generated about $6 million in taxable revenue for Solvang this year.
According to Solvang Mayor Ryan Toussaint, this loss of funds will force the city to dig into its financial reserves to pay for miscellaneous costs and will complicate its economic recovery once the coronavirus crisis subsides.
As there’s currently no end in sight to the COVID-19 situation, the loss of half a million dollars every month due to no tourism could possibly have a significant impact on funds for important expenses such as the cost for city personnel and the city’s contract with the Santa Barbara County Sheriff’s Office.
For more Information: Santa Barbara News-Presssanta barbara news-press
by josh grega
april 11, 2020