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Board directs legal, tourism committee to pursue stronger short‑term rental registration and enforcement
Summary
County staff reviewed transient occupancy tax collections and voluntary agreements with platforms; supervisors directed legal and tourism ad hoc to draft an ordinance and consider fines or platform registration requirements.
San Benito County supervisors received an informational presentation May 12 on the county’s transient occupancy tax (TOT) collections and voluntary collection agreements with short‑term rental platforms, then directed staff to pursue stronger registration and enforcement measures.
Auditor-Controller Joe Paul Gonzales said the county’s TOT covers hotels and short‑term lodging under 31 days and that voters increased the county rate from 8% to 12% in February. He reviewed contracts the county has with third‑party platforms and compliance vendors: Hipcamp and HomeAway/VRBO were remitting TOT and the county had a host‑compliance contract with Granicus (Host Compliance) to identify listings in unincorporated areas in real time. Gonzales said Granicus’ service costs the county under $10,000 annually.
Gonzales told the board that some operators remit TOT but are not registered with the county’s TOT operator certificate program; the county has sent notices informing operators they remain required to register even where platforms remit tax on their behalf. He said a handful of operators are late in remittance and that the county is pursuing an operator who has asked to waive penalties.
Supervisor discussion focused on the need to require registration uniformly and on using fines and ordinance language to compel platform cooperation. Several supervisors urged legal counsel to draft an ordinance that would require platform operators to register and to allow penalties for failure to register. Supervisors also discussed seeking input from platforms and the county’s tourism committee before finalizing language. Chair and several supervisors suggested following models used in Marin and Santa Cruz counties.
Gonzales and staff said current agreements with remitting platforms would likely need amendments and that Granicus can provide lists of active listings; platforms sometimes refuse to be enforcement agents but can work with jurisdictions to display a registration status and other transparency features. Supervisors asked for draft ordinance language and legal review of whether fines or registration requirements would require voter approval; counsel was asked to report back. The board directed counsel and the tourism committee to start work with templates and platform outreach and to return with proposed ordinance language.
Gonzales said TOT revenues have averaged about $500,000 annually in recent years, with collection expected to reach roughly a half‑million dollars for the current fiscal year despite several late filers.
