The Board of Supervisors Tuesday approved a five-year renewal of the Temecula Wine Country Tourism Marketing District, intended to generate revenue for promotional campaigns to attract more visitors to southwest Riverside County for the benefit of vintners and other businesses.
Public hearings on the renewal were held in September and October, and no opposition was recorded then or during Tuesday’s meeting, culminating in a 4-0 vote to approve it, with Supervisor Kevin Jeffries abstaining.
Jeffries indicated there were components of the district’s tax system that he did not like, but not to the point of voting against it.
Visit Temecula Valley, the nonprofit agency overseeing the district’s affairs, submitted a report indicating there was overwhelming support for renewal.
The marketing district, analogous to a business improvement district under state law, was conceived in 2015 and founded as a five-year enterprise in August 2016.
The district had been scheduled to be disestablished. However, after the board’s reauthorization, the county Office of the Treasurer-Tax Collector will be prepared to continue to collect receipts for the renewed entity this month.
According to the county Office of Economic Development, all lodge proprietors within the boundaries of county-designated Wine Country — currently 169 in a 33,000-acre space — will be required to set aside 2% of gross receipts from overnight stays and dedicate that revenue to Visit Temecula Valley’s marketing efforts.
Funds will be procured on a quarterly basis by the county Office of the Treasurer-Tax Collector.
It’s estimated the district will generate roughly $780,000 annually, for a five-year total of $4.14 million.
According to Visit Temecula Valley, between 2016 and 2021, average hotel occupancy rates grew from 74.3% to 77.1%. In addition to resort and motel availability, the Wine Country also now includes private properties that are leased as short-term rentals.
The projected amount of sales tax revenue generated for the county and state in the 2021-2026 period was not specified in documents posted to the board’s agenda.