To: Board of Supervisors
From: Supervisor Haschak
Meeting Date: September 12, 2023
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Department Contact: |
Supervisor Haschak |
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707-463-4221 |
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Item Type: Regular Agenda |
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Time Allocated for Item: 45 Minutes |
Agenda Title:
title
Discussion and Possible Action Including Direction to Staff Regarding an Increase to the Transient Occupancy Tax for Vacation Home Short Term Rentals in Mendocino County
(Sponsor: Supervisor Haschak)
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Recommended Action/Motion:
recommendation
Provide direction to staff regarding options for creating a ballot measure for increasing the Transient Occupancy Tax for Vacation Home Short Term Rentals in Mendocino County.
End
Previous Board/Board Committee Actions:
Short-term rentals (STR) and other transient occupancy providers such as hotels, motels, inns, and others are subject to transient occupancy tax (TOT) pursuant to California Revenue and Taxation Code Section 7280 and Mendocino County Code Chapter 5.20
Summary of Request:
The Transient Occupancy Tax for Vacation Home Short Term Rentals is the same as all other transient housing. Many counties have an additional amount for short term rentals. The TOT is 10% for all. Each additional percent could generate $200,000-$250,000.
Most of these taxes are paid by people out of County who are staying in short term rentals. Any change needs to be voted on by the residents of Mendocino County. An important Board discussion will include the County’s need to generate money for competitive wages, maintaining roads, and providing public safety. If the Board decides to place any increase on the ballot, it would need to be prepared by December for the March, 2024 ballot or July 30, 2024 for the November 2024 ballot. An additional question for the Board is whether this tax should go to the general fund or be designated for a specific purpose such as housing, employee salaries, roads, etc.
Questions for the Board are:
How much of an increase to TOT for STRs?
Should it be designated to general fund or specific purpose?
When should it be placed on the ballot?
Should there be a sunset for this tax increase?
Alternative Action/Motion:
Consider alternative amounts, scope, or timing of any action.
Does This Item Support the General Plan? Yes
Strategic Plan Priority Designation: An Effective County Government
Supervisorial District: All
vote requirement: Majority
Supplemental Information Available Online At: N/A
Fiscal Details:
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source of funding: N/A |
budgeted in current f/y: N/A |
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current f/y cost: N/A |
if no, please describe: |
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annual recurring cost: N/A |
revenue agreement: N/A |
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budget clarification: N/A |
Agreement/Resolution/Ordinance Approved by County Counsel: N/A
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CEO Liaison: Executive Office |
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CEO Review: Yes |
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CEO Comments:
FOR COB USE ONLY
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Executed By: Atlas Pearson, Senior Deputy Clerk |
Final Status: No Action Taken |
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Date: September 13, 2023 |
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