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Home My WebLink About _ 4.1(a)--Letter of Support for Senate Bill 346 GI �" Y C� F � � �- ' � ° � � i � CITY OF REDDING �� REPORT TO THE CITY COUNCIL MEETING DATE: August 4, 2025 FROM: Jason Gibilisco, Management ITEM NO. 4.1(a) Assistant to the City Manager ***APPROVED BY*** ��m rt �.� s.N,.�� „�,� 7t�su.��Ci� i co,�.; a��a��.exa�c�tt�+sivl�zikt�9lrwG:i4yhStrr�ag�,x 7r`.n,��.(�2.5 1�.1�71Ti,�1 � �.Cl ��.'� i��!��6�� jgibilisco@cityofredding.org btippin@cityofredding.org SUBJECT: 4.1(a)--Letter of Support for Senate Bill 346 Recommendation Authorize the Mayor to send a letter of support for Senate Bill 346 (Durazo) which requires short-term rental facilitators to provide the address of a short-term rental listing at the request of a 1oca1 agency to allow for audit authority for transient occupancy taxes. Fiscal Impact There is no direct�iscal impact on the General Fund as a result of sending the attached letter. Alternative Action The City Council could decline to authorize the Mayor to send the letter or provide alternate direction to staff. Background/Analysis Local agencies currently lack access to property addresses and other property related information from short-term rental facilitators. This makes it difficult for cities to properly collect and audit transient occupancy taxes (TOT) and to just accept what is received. Local agencies can only compel short-term rental facilitators to disclose property information through certain legal action, such as subpoenas. SB 346 reguires short-term rental facilitators to provide local agencies with physical addresses of each short-term rental listed on th� facilitator's website, the nine-digit zip code, and each short- term rental during a specified period. This ensures cities are eolleeting the correct amount of TOT and allows for more efficient enforcement against unlicensed short-term rentals. Report to Redding City Council July 30, 2025 Re: 4.1(a)--Letter of Support for Senate Bi11346 Page 2 Environmental Review This is not a project as defined under the California Environmental Quality Act, and therefore, no further action is required. Council PNio�^ity/City Manager Goals • This is a routine operational item. Attachments ^SB 346 - Letter of support � f T Y C�TY �F � I � . �,- 777 Cypress Avenu�, Reddin�, CA 96C7C�� , �� .--� � PC� BC�� 4g6a71, Redding, CA �6�4�-6C771 G A L I F } :. -- cityaf�e�lding.�rg lack Munns,Mayor jmunns@cityofredding.org 530.225.4447 August 4, 2025 The Honorable Juan Carrillo Chair, Assembly Local Government Committee 1020 N Street, Room 157 Sacramento, CA 95814 RE: SB 346 (Durazo) Local agencies: transient occupancv taxes: short-term rental facilitator. Notice of SUPPORT (As Amended on May 8, 2025) Dear Assembly Member Carrillo, The City of Redding supports SB 346, which would better equip cities to enforce local ordinances related to short-term rentals, including the collection and remittance of transient occupancy taxes (TOT). Short-term rentals are regulated exclusively at the local level via the adoption of an ordinance that often incl�udes regulations on permitting, tax compliance,noise, parking, occupancy, as well as other responsibilities for hosts and short-term rental facilitators. In some instances, ordinances limit the number of short-term rentals allowed to operate lawfully, other ordinances ban short-term rentals entirely. Short-term rentals can present numerous challenges to neighborhoods and adjacent property owners. They may create additional noise, traffic,parking, and public safety issues, decrease available housing stock, and in some cases turn residential neighborhoods into de-facto hotel rows, collectively creating additional demands on local public service providers. Unfortunately, the enforcement of TOT ordinances and the collection and remittance of these taxes from short-term rentals can be inconsistent, even when voluntary collection agreements are in place with a short-term rental facilitator. Cities lack access to property addresses or other property-related information, even under these agreements, resulting in a difficult choice to either accept tax payments without any way to verify their accuracy and legality or attempt to collect taxes directly from property owners—a costly and time-consuming process. Meanwhile, short-term rental facilitators have full knowledge of these properties' locations and resist disclosing this information. Cities can only compel short-term rental facilitators to disclose this critical information through certain legal action, such as subpoenas. This is not how oversight of public dollars should work. SB 346 would address the above issues by providing cities with the physical address of each short-term rental listed on the facilitator's website and full audit authority of TOT dollars. These changes would ensure the correct amount of TOT is being collected and remitted and would allow for more efficient enforcement against unlicensed units. For these reasons, the City of Redding supports SB 346. Sincerely, Jack Munns City of Redding Mayor cc. The Honorable Megan Dahle(via email) The Honorable Heather Hadwick(via email) Meg Desmond, League of California Cities, cityletters@cacities.org League Regional Public Affairs Manager(via email)