Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Tax And Revenue topic
No spam. Unsubscribe anytime.
Hosts and industry groups press Hermosa Beach for clarity on retroactive TOT liability after Keane ruling
Summary
Short-term-rental operators, industry advocates and residents urged the council to clarify whether and how the city will collect TOT from operators who were previously treated as prohibited in the coastal zone, asking for a prospective compliance path similar to neighboring cities and for clear start dates for liability.
A string of public commenters raised legal and operational concerns about the city's approach to transient occupancy tax (TOT) collection for short-term rentals in the coastal zone. Several operators—including speakers who said they have been escrow-holding funds—said the city historically treated many coastal residential STRs as prohibited and therefore did not provide a registration or collection mechanism. Those speakers asked the city to adopt a prospective compliance path rather than demanding retroactive taxes covering multiple years when operators had no clear way to collect TOT from guests.
A representative of the California Short Term Rental Association (speaker 34) said the March ordinance amendment that removed the term "permitted" from the voter-approved measure has significant consequences, potentially extending TOT liability to properties the city previously treated as unpermitted. "We think moving forward under this new invalid ordinance and pursuing retroactive collection before these questions are resolved creates a real risk for everyone," the association president said. Operators and residents pressed for precise guidance on liability start dates, reconciliation processes and whether the council would consider a prospective compliance path modeled on Manhattan Beach's approach. Staff acknowledged unresolved legal questions and noted the city is monitoring court guidance and state law.
