Is there anything being done where illegal short term rentals are using the Airbnb platform?
Short term rentals that are operating legally have to pay at TOT tax at 10% or more.
These legal Airbnb or short term rentals have to compete with illegal short term rentals that are not burden with this tax, since they are working under the radar of code enforcement.
Is there any responsibility to the platform to make sure that short term rentals or cities do not allow it because of city law that they be banned from the platform?
There are literally hundreds of short terminals that are operating illegally or they’re running their property out for 30 days or less in cities that do not allow them.
Example, cities, in California, Brea, Garden Grove, Yorba Linda, California, now in the state of California is suggesting SB 584, which will add additional 15% off the top, this will legal operators will now be at 25% disadvantage starting January 1, 2025.
I’m suggesting that if we could get all short term rentals to pay the 10% TOT tax, the 15% state tax would not be needed, but But since the Illegal operators are not paying the local 10% TOT, the state is taking it upon themselves to add additional 15% shortfall to existing legal operators.
Just wanna know what the process is for Airbnb to assure legal operation, or is it just on the honor system?
They claim that this tax goes back to local governments in California.
in the city of Santa Barbara alone there’s over 1000 illegal short term rentals, while there’s only 100 legal short term rentals, this is an example of the current taxes are not being paid, so they want to introduce an additional 15% tax for those that are paying to supplement all the legal activity.
It is my view if platforms like Airbnb and VRBO make sure that any listing must comply with local laws, it would make this additional tax not needed..
