Not All Wine Glasses Tinkling Happily over Santa Barbara County’s Business Improvement District

June 3, 2026 - 00:32

The Goldwater Institute has filed a lawsuit against the Santa Barbara County Board of Supervisors and the Santa Barbara County Vintners Association, representing Lompoc-based Flying Goat Cellars. The legal action challenges the county's Business Improvement District, arguing that the mandatory fees imposed on wineries violate constitutional protections.

According to the complaint, the Business Improvement District forces wineries to pay assessments that fund marketing and promotional activities for the region. Flying Goat Cellars, a small producer, claims it does not want to support these collective efforts and should not be compelled to pay. The Goldwater Institute, a libertarian public interest law firm, argues that the district amounts to compelled speech and an unconstitutional taking of private property.

The lawsuit targets the county board for approving the district and the vintners association for administering it. The plaintiffs contend that the fees function as a tax that benefits private interests rather than a legitimate public purpose. They seek a court order to halt the collection of assessments and to declare the district invalid.

Supporters of the Business Improvement District say it helps promote Santa Barbara County wines globally, boosting tourism and sales for all producers. But Flying Goat Cellars and its legal team argue that small wineries should have the right to opt out of such programs. The case highlights ongoing tensions between collective marketing efforts and individual business autonomy in California's wine industry.