The Orange County Rules Committee convened on September 17, 2025, to discuss a significant legislative proposal aimed at amending the county's hotel and motel occupancy tax to include short-term rental units. This initiative, driven by recent state legislation, seeks to create a registry for short-term rentals, which will enable the county to impose occupancy taxes on these properties, similar to those already applied to hotels and motels.

The proposal, identified as legislative request number 285, is seen as a vital source of revenue for the county and a means to assist local municipalities in managing short-term rentals more effectively. Currently, many local officials struggle to identify these rentals, which can complicate zoning enforcement and tax collection. By establishing a registry, the county aims to provide clarity and support to municipalities, allowing them to better understand the landscape of short-term rentals in their areas.

The tax rate for short-term rentals will mirror that of existing hotel and motel taxes, ensuring consistency across the board. However, local municipalities will retain their authority to enforce their own occupancy taxes and regulations, which will remain unaffected by this new law. The county is also considering whether to charge a fee for registration, with opinions divided on whether this would encourage participation or create barriers.

The committee discussed the implications of this law for existing local regulations on short-term rentals. It was confirmed that municipalities with their own codes will not be impacted, allowing them to continue enforcing their rules regarding short-term rentals. This means that towns and villages that have opted to prohibit short-term rentals will still have the power to enforce those decisions.

As part of the implementation process, the county is preparing to issue a request for proposals (RFP) for a consultant to assist in establishing and maintaining the registry. The goal is to have the registry operational by early December 2025, pending the passage of the law.

In conclusion, the proposed amendment to the occupancy tax law represents a proactive step by Orange County to adapt to the growing short-term rental market. By creating a registry and aligning tax policies, the county aims to enhance revenue collection while providing municipalities with the tools they need to manage short-term rentals effectively. This initiative reflects a broader commitment to ensuring that local governments can navigate the complexities of modern rental markets while safeguarding community interests.