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Residents urge immediate collection of TOT from short‑term rentals; staff says enforcement and Coastal Commission limits complicate immediate action
Summary
Public commenters urged Hermosa Beach to start collecting transient‑occupancy tax from short‑term rentals now, saying retroactive collection could yield about $1M annually; staff said collection and enforcement options exist but are constrained by Coastal Commission rules and require further policy direction.
During the April 28 budget study session public commenters pressed the council to act quickly to collect transient‑occupancy tax (TOT) from short‑term rentals (STRs) as an immediate revenue source.
Annabelle Baird told the council the city “appears to be testing another stealth tax increase” on residents and urged staff and council to prioritize visitor‑paid revenue instead. Baird argued that, based on prior estimates mentioned by staff, collecting TOT from existing STRs could bring in about $1 million annually and urged the city to separate TOT registration from a residential STR ban that is awaiting Coastal Commission review so operators can register and pay without risking evidence for enforcement actions.
Staff response and constraints: Brandon Walker acknowledged the revenue potential and told the council retroactive TOT collection could be material — staff estimated roughly $1 million from about 100 properties as a rule of thumb — but warned that enforcement, court rulings and Coastal Commission processes complicate immediate implementation. Walker said staff is happy to revisit STR fee and enforcement policy with council direction.
Other public suggestions: Commenters recommended technical fixes and administrative approaches to collect TOT via platforms (for example, arrangements with Airbnb/booking platforms), pursue dynamic parking pricing, and form a resident/business advisory group to explore revenue, public‑private investment and to build community trust before pursuing ballot measures.
Next steps: Staff indicated short‑term rental policy and enforcement will be discussed in future budget and policy hearings; councilmembers requested a separate, dedicated hearing on STR policy and the fiscal effects of expanding TOT collection before recommending major policy changes.
Representative quotes from the meeting appear in the public record and were attributed to named commenters or staff in the session.
