Madera County approves tax collection agreement with HomeAway for short-term rentals

In a significant move to enhance revenue collection from short-term rentals, the Madera County Board of Supervisors discussed entering into a voluntary collection agreement with HomeAway.com, also known as VRBO. This agreement, which is set to take effect on March 1, 2025, will allow the county to collect a transient occupancy tax of 9% and a tourism business improvement district assessment of 2.5% from operators in unincorporated areas.

During the meeting, Tracy Kennedy, the county's treasurer and tax collector, highlighted the importance of this agreement, noting that it follows a similar arrangement already in place with Airbnb. The county currently has approximately 1,200 registered short-term rental operators, with VRBO accounting for nearly 973 listings. The agreement aims to streamline tax collection from these operators, ensuring that the county captures the revenue generated from the growing short-term rental market.

Kennedy emphasized that while the agreement does not incur any upfront costs for the county, it represents a crucial step in maximizing tax revenue from vacation rentals. The county has seen substantial financial benefits from its existing partnership with Airbnb, receiving checks that range from $800,000 to $1 million quarterly. However, there are concerns about compliance, as many operators may not be properly registered or may not have the necessary business licenses.

Supervisor McCauley raised questions about the lack of detailed information from VRBO regarding property addresses, which complicates enforcement efforts. The county is currently working to identify non-compliant operators and ensure they meet local regulations. The discussion also touched on ongoing legislative efforts to improve data sharing between rental platforms and local governments, which could enhance compliance and revenue collection.

The meeting underscored the county's commitment to adapting to the evolving landscape of short-term rentals, balancing the need for revenue with the importance of community safety and compliance. As Madera County continues to navigate this growing sector, the board's actions reflect a proactive approach to managing the impacts of short-term rentals on local neighborhoods and ensuring that all operators contribute fairly to the county's tax base.