Cats with Claws – California Lodging Tax Jurisdictions Clamp Down

It has been noted before that many cities across the country are cracking down on short-term and vacation rentals.  They’re taking concerted measures to both restrict vacation rentals or to find those that are operating illegally (without a license or permit) and ensure they’re getting all of the lodging taxes they’re due.  If this is news to you, take note.  Especially if your rental property is in California.

Last week, news broke about actions in Mendocino County – a very popular coastal retreat area north of San Francisco – and in Palm Springs.  You can read the specifics, but the short story is that Mendocino County is attempting to severely restrict short-term rentals while Palm Springs is taking high-tech measures to track down unregistered rentals and either shut them down or make them pay up – or both.

If you’re thinking “I don’t care – my rental isn’t in California,” here’s why you should still care.  These actions are by no means limited to these isolated instances.  It’s happening – and spreading – all over the country.  So if you’ve taken a “Let them find me” approach to lodging tax compliance, your days may be numbered and the consequences can be significant.  Don’t know much about lodging taxes and if or how they apply to you?  It’s no longer practical to “think” you’re doing it right or rely on your neighbor’s advice.  Try our free tax tool to learn the lodging tax requirements for your rental as well as the ins and outs of compliance so you can sleep better at night – knowing vs. hoping that you’ve got them right when the taxman cometh.