Title
Introduction of Ordinance Amending the Alameda Municipal Code by Amending Various Provisions of Section 3-61 (Transient Occupancy Tax) of Division IX (Taxes) of Article II (Taxation) of Chapter II (Finance and Taxation), Clarifying and Restating Hosting Platforms' Responsibility to Collect and Remit Transient Occupancy Taxes. (City Attorney 2310)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
The City of Alameda (City) currently has large numbers of residential dwelling units advertised on hosting platforms, such as AirBnB, Vrbo, and HomeAway, for which transient occupancy tax (TOT) is currently owed, but is not collected. The current TOT Ordinance imposes an obligation on such platforms to collect TOT and remit it to the City. The City Attorney's Office is recommending minor clarifying amendments to the TOT Ordinance designed to facilitate the immediate collection of TOT from such platforms.
BACKGROUND
In October 1974, the City adopted Ordinance No. 1739, or the Uniform Transient Occupancy Tax Regulations of the City of Alameda, which is codified at Section 3-61 (TRANSIENT OCCUPANCY TAX) of the Alameda Municipal Code. The Ordinance requires "hotels" to remit taxes on rents paid by transients for the privilege of occupying a hotel room.
The Ordinance defines "hotel" broadly to include "any structure or portion of any structure, which is occupied or intended or designed for occupancy by transients for dwelling, lodging, or sleeping purposes." The City Attorney's Office interprets this definition to include dwelling units, such as single family homes, rental units, and the like.
In recent years, the use of web-based hosting platforms to advertise and facilitate renting or the transient use of residential dwellings units (often referred to as "short-term rentals" or "home sharing") has exploded. Many cities have struggled with the "hotelization" of residential neighborhoods, including cities up and down the State of Califor...
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