Agenda Date: 10/23/2018
Subject:
Title
Study Session regarding the regulation of short-term rentals in Title 10, Littleton's Zoning Code
Body
Presented By:
Steve Kemp, City Attorney and Jocelyn Mills, Community Development Director
POLICY QUESTION:
Does city council support enacting a licensing method for the regulation of short-term rentals, 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.
PRIOR ACTIONS OR DISCUSSIONS:
The following prior actions and discussions have been held on this topic.
* July 10, 2018: City council study session regarding short-term rental policies. Council directed staff to draft ordinance language to regulate short-term rentals.
* August 28, 2018: City...
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