AB 1220, as introduced, Harper. Transient occupancy taxes: residential short-term rentals units.
Existing law authorizes the legislative body of a city or county to levy a tax on the privilege of occupying a room or other living space in a hotel, inn, tourist home or house, motel, or other lodging unless the occupancy is for a period of more than 30 days, as provided. The California Constitution also provides that a charter city may levy local taxes to raise revenues for local purposes, subject to restrictions imposed by that city’s charter or preemption in matters of statewide concern.
This bill would prohibit a legislative body of a local agency, defined to mean any city, county, city and county, including any chartered city, county, or city and county, from levying a tax on the privilege of occupying a residential short-term rental unit, as defined.
This bill would make legislative findings and declarations regarding the statewide concern of excluding the occupancy of a residential short-term rental unit from local transient occupancy taxes to ensure statewide uniformity and fairness in how those taxes are applied.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
The Legislature finds and declares that ordinary
2people who want to earn additional income through home-sharing
3arrangements should not be burdened with the collection of, and
4compliance with, local transient occupancy taxes. Excluding the
5occupancy of a residential short-term rental unit from local
6transient occupancy taxes will ensure statewide uniformity and
7fairness in how those taxes are applied, and therefore is a matter
8of statewide concern, not a municipal affair, as that term is used
9in Section 5 of Article XI of the California Constitution.
Section 7282.1 is added to the Revenue and Taxation
11Code, to read:
(a) Notwithstanding any other law, no legislative body
13of a local agency may levy a tax on the privilege of occupying a
14residential short-term rental unit.
15(b) For purposes of this section:
16(1) “Local agency” means any city, county, city and county,
17including any chartered city, county, or city and county.
18(2) “Residential short-term rental unit” means a residential
19dwelling unit, including single-family residence, apartment,
20residential condominium unit, or other residential real estate
21improvement, in which members of the public, for consideration,
22obtain sleeping accommodations for less than 90
days.
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