Calling on all California Hosts - No on CA SB 584

[Tony88]

CA SB 584 Short-Term Rental Tax Law will be taken up on the California Senate Floor soon. The bill would, beginning January 1, 2025, impose a tax on the occupancy of a short-term rental in California at the rate of 15% of the rental price of the short-term rental on top of other taxes and assessments.   The bill would increase the overall tax and assessment rate for short-term rental guests visiting counties that already have a TOT tax.  This could add 27%-$30% or greater on taxes at booking time.

[Dan14537]

The billed passed out if the Senate, now to Assembly.

To be clear the 15%, collected and paid by the platform operators, will be in addition to any local TOT we all pay, which is in California by local or county ordinance.  So in San Diego that is 10.5% TOT, plus the 15% if this passes.  The idea that the local TOT for us in the 100+ city and county ordinances  somehow goes away via litigation or otherwise if this passes is just not the case. 

We are being singled out because of a perceived nexus with the housing shortage and I think because we have no lobby or voice in Sacramento.

This will make us less competitive with hotels if you compete with them in your trade area and in my view will only come out of our pockets as I know I can't pass along a 15% rate increase.

While I agree with the premise of affordable housing (who doesn't) the hosts on AirBnB will be bearing the brunt of this.  How or why is that fair?  If tourism is being singled out add in other sources of revenue.

So raise your voices.  You can call your assembly members that is best, and make our case.

[Terry525]

I sent a protest to my state senator and assemblyman several months ago and again today. I hope others have done the same. This legislature is being run by nitwits. 

We provide visitors with a nice home that is competitive with hotel rates. We create foot traffic for local business and tax revenue for cities. That is good for all.

Now this legislature thinks it can cut open the goose that lays the golden egg without consequences?

Think again.

I already  pay my city  11% of a stay out of my own pocket for fear of cancellation. I can't pay another 15 percent. 

What visitor would be stupid enough to pay a 26% tax themselves  when they can stay in a hotel for less, or just not visit California at all? They can go to another state that will not gouge them.

The revenue loss for us, for local business and for the city will be high.

And what will all of this accomplish?

This tax will just be another Speed-Rail boondoggle. This legislature does not have the intelligence to build low income housing. They will get taken to the cleaners by developers who will know how to fleece them out of our money.

Everyone loses. Thanks California.

[Peter3794]

This bill has passed the Senate and now onto the Assembly :(, referred to the housing and community development commitee, you can make your voice heard by submitting a position letter opposing the bill here https://ahcd.assembly.ca.gov/ It looks like the hearing is scheduled for June 28th at 930am if anyone is in the Sacto area and wants to show up to voice opposition

[Peter3794]

Sharing the letter that I wrote to my assembly members, feel free to copy/paste and tweak to your liking

I am writing to express my strong opposition to California Senate Bill 584 (CA SB584) and urge you to reject its approval. This bill imposes a 15% tax on short-term rentals, on top of existing taxes and assessments. It would significantly increase the tax burden for guests in counties with Transient Occupancy Tax (TOT), potentially reaching 27%-30% or more. This excessive taxation would deter visitors, harm the tourism industry, and negatively affect small businesses.

SB 584 disregards the impact it would have on California's travelers, vacation rental community, and associated employees. Short-term rentals provide diverse accommodation options and play a crucial role in meeting tourists' needs. By adding an extra tax, the bill undermines their competitiveness and risks revenue loss for small businesses.

It is important to note that short-term rentals represent only 1% of California's housing stock. They do not significantly contribute to housing unaffordability. The bill's approach fails to address the lack of affordable multifamily units, the primary driver of the housing crisis. Penalizing short-term rentals is unjust and ineffective in solving the affordability issue.

In conclusion, CA SB584's proposed tax burden and targeting of short-term rentals are misguided. It harms tourism, small businesses, and employees, while neglecting the true causes of the housing crisis. I urge you to reject this bill and focus on comprehensive and fair measures that address housing affordability and support California's tourism industry.

Thank you for your attention to this matter.

You can find your assembly members here:

https://findyourrep.legislature.ca.gov/

[Terry525]

I own a short-term rental. SB 584 is a classic case of fools cutting open the goose that lays the golden egg. 

The point of stvr's  is to SAVE MONEY for groups and families while generating dollars for local tourism and businesses as well as revenue for city governments--ALL FOR NO INVESTMENT.

Now California wants to cut itself in and add  15% to the 11% occupancy tax already collected?

Honestly, travelers are not sheep and they are not stupid. They have choices

Many of my guests are out-of-state (snowbirds) and out-of-country (Canadians). How many of them would love to pay an extra 26% just to enjoy California's reputation for dirty air,  jammed freeways and unsafe streets?

They are not the only ones. Californians would also think twice if SB 584 passes. When crunching the travel numbers, they'll  realize it's cheaper to stay close to home, or visit ANOTHER STATE.

If passed, every dollar the Legislature ASSUMES SB 584 generates for ANOTHER BOONDOGGLE (we all know that's what this will become) will cost local businesses and city governments $2-$3 in lost revenue. 

BTW. It is not necessary to wait for a downturn in 2025 due to SB 584. It is happening already.

My reservations have dropped 50% since this bill was presented and I am in my busy season. I attribute the decrease  to the current cost of travel (ex. gasoline, food, airfares...). A 15% tax increase for California stvr's will kill the other 50%.

The goose is ready for the knife.

[Drew2995]

Are there any state-wide advocacy groups that I can join?