SB 1102: Transient occupancy taxes: hosting platforms.

(1)Existing law authorizes a city, county, or city and county to impose 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.

This bill, on and after July 1, 2017, would require every platform, as defined, that elects to assume the responsibility of collecting and remitting transient occupancy taxes on behalf of an operator to collect and remit the amount of the tax levied on a rental transaction facilitated by the platform for a unit that is offered for tourist or transient use and is located within a city, county, or city and county that has not elected to retain the responsibility for directly collecting the tax from operators, as specified. The bill would authorize a platform to make its election to assume responsibility, and a city, county, or city and county to make its election to retain responsibility, by notifying the Controller of the election on or before April 30, 2017. The bill would authorize a platform that does not make its election by April 30, 2017, to elect to assume responsibility by notifying the Controller on or after July 1, 2017, and would make this election effective 6 months after the Controllers receipt of the notification or on the date specified in the notice, whichever is later. The bill would authorize a platform to discontinue an election, and a city, county, or city and county to make or discontinue an election, by notifying the Controller on or before June 30, 2019, or June 30 of any odd-numbered year thereafter, and would make this discontinuance or election effective on July 1, 2020, or July 1 of the first even-numbered year after notification.

This bill, commencing on January 1, 2017, and by December 31 of each year thereafter, would require the Controller to review or audit a platforms collection and remittance of tax revenue pursuant to the bill and would prohibit the Controller or any person who obtains access to information contained in, or derived from, the review or audit to disclose information pertaining to any platform or other person required to provide information subject to audit or review, as specified. The bill would provide that a platform and a city, county, or city and county that, on or before June 1, 2016, have entered into a binding legal agreement relating to the collection of transient occupancy taxes are bound by the agreement and are required to notify the Controller of the agreement, that any election made to the Controller by the platform or the city, county, or city and county is not effective as to any other party to the agreement, and that the platforms collection and remittance of transient occupancy taxes pursuant to the agreement are not subject to audit or review by the Controller pursuant to the bill, unless the platform and the city, county, and city and county mutually agree to terminate the agreement.

(2)The California Constitution authorizes a city or county to make and enforce within its limits all local, police, sanitary, and other ordinances and regulations not in conflict with general laws.

This bill would find and declare that providing short-term rental online platforms with uniform transient occupancy tax administration requirements is a matter of statewide concern, and that the bill therefore applies to charter cities, charter counties, and charter cities and counties.

(3)Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.

This bill would make legislative findings to that effect.

(4)The California Constitution requires local agencies, for the purpose of ensuring public access to the meetings of public bodies and the writings of public officials and agencies, to comply with a statutory enactment that amends or enacts laws relating to public records or open meetings and contains findings demonstrating that the enactment furthers the constitutional requirements relating to this purpose.

This bill would make legislative findings to that effect.