Treasurer seeks board direction on amnesty window and appeals process after new short‑term‑rental sweep

Patrick Sullivan, Lake County treasurer and tax collector, told supervisors on Tuesday that a recently purchased short‑term‑rental identification tool has uncovered roughly 172 unregistered listings countywide and asked the board for direction on penalty relief and administrative handling of appeals.

Sullivan said the county now has about 209 registered transient‑occupancy‑tax (TOT) properties but the new software, Rentalscape by Deckard Technologies, identified 172 additional unregistered listings as of April 30; he estimated about 50 more partially identified listings remain. “There are more unregistered short‑term rentals in the county than registered hotels, motels and campgrounds combined,” Sullivan said.

Under the county’s prior practice, first‑time cooperative operators who promptly provided requested documentation could receive waivers of interest and penalties; appeals normally go to the Board of Supervisors when the taxpayer asks. Sullivan asked whether the board wanted to continue offering temporary penalty relief for first‑time cooperative operators and whether the tax office should handle appeals administratively under a board‑authorized standard rather than route each appeal to the board.

Supervisors voiced general support for a short amnesty window — several members suggested roughly 30 days — so operators who contact the tax office and cooperate can resolve liabilities and set up payment arrangements without a board appeal. Supervisor Sabatier said he favored enforcement thereafter and suggested penalties should apply because short‑term rentals are commercial activity that affects housing supply and market fairness.

Members of the public who said they were new or small family operators asked for payment plans and said the county’s online guidance was hard to find. “We tried to look to see if there was a TOT tax, and we couldn’t find anything,” said Madison Amaryl, a caller who described a family cabin listing. Sullivan and staff said the tax office has allowed time‑limited payment plans in prior cases but that extended deferrals beyond roughly six months are administratively difficult. Sullivan said the county spent about $10,000 for the Rentalscape subscription and that staff follow‑up will require substantial labor.

The board directed staff to draft a resolution or administrative procedure reflecting the board’s direction: (1) offer a short, clearly defined amnesty window (approximately 30 days) for cooperative, first‑time operators to cure noncompliance with waivers of penalties/interest; (2) request county counsel and treasury staff prepare proposed changes to the appeals process so routine waiver requests can be handled administratively; and (3) explore code or ordinance changes through Community Development to address land‑use and nuisance issues related to short‑term rentals.

Sullivan said he will follow the board’s direction and return with proposed language for a resolution and recommendations on whether appeals authority should shift administratively.

What’s next: Treasurer’s office and county counsel will draft a resolution or administrative policy implementing a time‑limited penalty relief window and explore changes to chapter 18 of the Lake County Code addressing transient‑occupancy tax administration and enforcement.