Agenda Date: 08/28/2018
Subject:
Title
Amendments regarding short-term rentals in Title 10, Zoning Code
Body
Presented By:
Steve Kemp, City Attorney
REQUESTED COUNCIL ACTION:
Does city council support enacting a licensing method for the regulation of short-term rentals based on the direction provided in the July 31, 2018 study session, and upon such support directing introduction of an ordinance on first reading?
BACKGROUND:
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.
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. 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.
Use of the sales tax licensing system as a means to regulate short term rentals is ineffective because the tax system does not look at operational issues. It is designed for the collection of taxes. Most cities that regulate short term rentals enact regulations addressing short-term rentals in residential units in their zoning code. At the July 10, 2018, study session, staff presented a number of policy questions for the council and received direction. The proposed ordinance is based on that direction.
PRIOR ACTIONS OR DISCUSSIONS:
Study session on July 10, 2018.
STAFF ANALYSIS:
Since most of the proposed ordinance is an amendme...
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