The following message was emailed to Truckee Lodging Providers on Monday, June 5, 2023.
VISIT TRUCKEE-TAHOE SENDS "STRONG OPPOSITION" STATEMENT TO CALIF. SENATORS RE: SB 584 - 15% STATE TAX INCREASE ON STR.
ABOUT 584 (Limon) from CALIFORNIA TRAVEL ASSOCIATION:
Laborforce housing: Short-Term Rental Tax Law proposes a 15% tax on a short-term rentals. This bill would, beginning January 1, 2025, impose a tax on the occupancy of a short-term rental in California at the rate of 15% of the rental. The bill would define “short-term rental” to mean the occupancy of a home, house, a room in a home or house, or other lodging that is not a hotel, inn, motel, or bed and breakfast, in California for a period of 30 days or less. It would require a short-term rental facilitator (i.e. Airbnb, VRBO, etc.) to collect the tax in the case where the facilitator processes the payment for the rental. It would require the operator (property owner) to collect the tax where no facilitator processes payment for the rental. The bill would require all revenues, less refunds and reimbursement to the California Department of Tax and Fee Administration of administration and collection costs, be deposited in the Laborforce Housing Fund.
To learn more about SB 584 and why it is NOT A SOLUTION for LOCAL HOUSING please visit the Visit Truckee-Tahoe Board of Directors, Supporting Documents for the SPECIAL MEETING we held last week.
It is ALL HANDS ON DECK as Visit Truckee-Tahoe works closely with Cal Travel Association and our VIP Partners in Truckee and Lake Tahoe to recognize the potential economic impact and to join our OPPOSITION.
As of today, OFFICIAL OPPOSITION includes California Travel Association, California Chamber Advocacy and California Association of Realtors.
THE FOLLOWING MESSAGE was sent by Visit Truckee-Tahoe to Senators Brian Dahle and Marie-Alvarado Gil last Thursday. However, SB 584 did manage to secure enough votes to move on and out of the Senate, albeit it was not easy. We have not won this battle yet and will pressure at every legislative juncture in the weeks and months ahead.
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SENATORS DAHLE & GIL:
Visit Truckee-Tahoe, Truckee’s official tourism authority, is in STRONG OPPOSITION to SB 584 as it stands today.
THANK YOU, for VOTING NO on SB 584 and for helping your colleagues in Sacramento realize the dire economic impact to tourism.
Travelers to Truckee-Tahoe will not tolerate a total guest levy increase from 13.25% to 28.25% and will take their vacation money OUT OF STATE, rendering our region uncompetitive and unable to recuperate lost market share.
Ski Area season passes are usable in multiple states and in many countries. If passed, we will see loss of California skier market share to Utah, Colorado, Idaho and more while skiers book vacations out of state – driven by a 2X increase in STR tax, coupled with convenient direct flights out of major California airports.
Local government and Nevada County could be greatly impacted. In Truckee, Transient Occupancy Tax (TOT) is the 3rd highest tax income source reaching nearly $8M in fiscal year 21/22. Two-thirds of Truckee’s lodging inventory is STR (1200 homes) trending at $44M in annual gross sales. The consequences of a 28.25% guest levy on STRs will be an immediate reduction of lodging demand for Truckee, resulting in TOT and Sales Tax decline for Town of Truckee’s general fund, as well as for our TBID (tourism business improvement district) collections used for stewardship and marketing.
The consequences to small businesses dependent upon tourism could be devastating. Truckee’s 2023 Tourism Impact Report indicates that travelers to Truckee in 2021 spent $130M (53% of a $242M tourism economy) at local shops, restaurants, and grocery stores.
Renewing the Truckee TBID could be very challenging as STR homeowners grapple with the market shock of a 2X increase in taxation for them and not for hotels, as it stands now.
We URGE YOU TO REMAIN OPPOSED to SB 584 and to VOICE YOUR OPPOSITION on behalf of the hard-working men and women who rely upon a thriving California tourism economy.
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Visit Truckee-Tahoe will continue to ADVOCATE STRONGLY against this bill, and we will keep you informed.
Thank you,
Colleen Dalton
CEO, Visit Truckee-Tahoe
