Agenda Date: 07/17/2018
Subject:
Title
Emergency ordinance establishing a moratorium on the issuance of business and sales/use tax licenses under the lodging classification for short term rental properties
Body
Presented By:
Steve Kemp, City Attorney
REQUESTED COUNCIL ACTION:
Does city council support issuing an emergency moratorium on the issuance of business and sales/use tax licenses under the lodging classification for short-term rental properties?
BACKGROUND:
The city issues business and sales/use tax licenses for the collection of sales taxes under the lodging classification for a number of businesses, including short-term rental properties. Unlike many cities, Littleton issues a one-time license that is valid indefinitely. This practice makes it considerably more difficult to impose new licensing requirements.
This same sales tax classification is used to issue business and sales/use tax licenses for many other uses such as hotels, motels, mobile home parks, communal rooming facilities such as a YMCA, and bed and breakfasts. The purpose of a proposed moratorium is not to address all uses in the lodging classification, but to enact regulations addressing short-term rentals in residential units. Short-term rentals are the rental of property to an individual for a period that does not exceed thirty (30) days, granting the individual the rights of a tenant as compared to a person renting a hotel or motel room.
Short-term rentals may consist of an entire house, a single room in a house, or a combination of these. All of these would have the same type of sales tax licenses under the lodging classification. Other types of lodging classifications advertise and use short-term online rental platforms. As a result, it is necessary to define certain types of uses in the lodging classification and exempt them from the moratorium in order to focus on the uses that need additional regulation. Some cities have attempted to use their zoning codes to addre...
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