TO: Board of Supervisors
FROM: Supervisor Haschak
MEETING DATE: September 12, 2023
DEPARTMENT CONTACT:
Supervisor Haschak
PHONE:
707-463-4221
ITEM TYPE: Regular Agenda
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)
End
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 d...
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