CSAC Bulletin Article

Online Short-Term Rentals Legislation On Hold
Institute Course set for September on the Sharing Economy

June 30, 2016

CSAC opposed Senate Bill 133 was pulled from the Assembly Local Government Committee before it could be heard this week at the request of the author, Senator Mike McGuire. This measure would have provided online short-term rental platforms like Airbnb protection from local transient occupancy tax (TOT) or hotel tax collection and other important data sharing requests to uphold local ordinances.

CSAC appreciates the leadership of Senator McGuire on this issue and his commitment to work with all stakeholders to find a path forward to will truly assist local agencies with their TOT collection without sacrificing local ordinances addressing land use and health and safety needs. At this time, CSAC believes cities and counties are best suited to develop agreements with online rental platforms but there may come a time when state regulation of this emerging business model is appropriate.

SB 133 is the fourth bill introduced in the 2015-16 legislative session seeking to directly address local agency regulation of the online rental platforms. New proposals in the next legislative session are not only anticipated but expected. In light of this, the CSAC Institute will be hosting an Emerging Issues Workshop on shared economy services and goods with heavy emphasis on the impact of short-term rentals offered by online platforms. The one-day workshop will be held on Thursday, September 8 in downtown Sacramento. More details and registration will be available soon.

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