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Treasurer-Tax Collector Department recommending the Board approve and authorize the Chair to sign Agreement for Services 4951 with Granicus, Inc., for Host Compliance Services, in the amount of $125,855, to provide short-term rental address identification, rental activity monitoring, tax audit support, compliance monitoring and a 24/7 rental hotline support for the term of July 1, 2020 to June 30, 2021.
FUNDING: General Fund.
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DISCUSSION / BACKGROUND
The Treasurer-Tax Collector Department, Tax Division, administers the County’s Transient Occupancy Tax (TOT) Program in accordance with Revenue and Taxation Code 7280 and El Dorado County Ordinance, Title 3, Chapter 3.28. Under the Program, the Department issues Short-Term Rental Business Licenses/TOT Certificates to property owners and manages the activities related to the filing and collection of quarterly TOT taxes. There are currently 1,100 active Business Licenses/ TOT certificates indicating 4,400 quarterly tax filings.
The Planning and Building Department administers the County’s Vacation Home Rental Program in accordance with El Dorado County Ordinance, Title 5, Chapter 5.56. Under the Program, the Department issues Vacation Home Rental (VHR) Permits and manages the Code Enforcement actions. Currently, there are 943 active short-term rental properties within the unincorporated areas El Dorado County.
Over the past 10 years, the short-term rental industry has experienced a significant increase in internet-based rental companies advertising, with reservation links, overnight lodging accommodations, ranging from single rooms to entire homes. Online companies include Airbnb, VRBO, TripAdvisor, Priceline, Expedia and over 125 other internet-based agencies. It is estimated by Granicus that approximately 1,748 unique properties within the unincorporated areas of El Dorado County are listed as short-term rental properties on vacation rental websites.
The monitoring of vacation rental websites...
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