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Consider authorizing the Treasurer-Tax Collector-County Clerk to sign a Voluntary Collection Agreement (VCA) with short term rental online booking service providers that are deemed appropriate for the facilitation of Transient Occupancy Tax (TOT) collections
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Published Notice Required? Yes ____ No _X _
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
The County Treasurer-Tax Collector-County Clerk (TTCCC) recommends that the Board consider authorizing the Treasurer-Tax Collector-County Clerk to sign a Voluntary Collection Agreement (VCA) with short term rental online booking service providers that are deemed appropriate for the facilitation of Transient Occupancy Tax (TOT) collections.
SUMMARY
In the unincorporated areas of Solano County, short-term rentals (less than 30 days) require the lodging operator or owner ("host") to register for a County Business License. Hosts are also required to collect TOT, also known as "hotel tax" or "bed tax" and related assessments. The TTCCC is responsible for administering the TOT program.
Vacation rentals listed on websites such as Airbnb have been difficult to regulate with regard to tax collection. In other jurisdictions, taxing authorities have negotiated with short term rental service providers to include TOT in their collection process in order to better ensure that all operators/owners are collecting and remitting required TOT. The TTCCC would like to negotiate a VCA with online booking service providers, such as Airbnb Inc., the largest online vacation rental listing website. Under this agreement, the online service provider will collect and remit TOT to the TTCCC on behalf of hosts who use their platform to rent their properties. A sample version of the contract is attached. (Attachment A). The finalized agreement, and any other VCA's entered into will be reviewed by counsel before acceptance. The TTCCC is requesting the authority to sign VCA with short term re...
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