Lodging tax increases fare well in local elections across U.S.

Issues related to short-term rentals (STRs) appeared on the ballot of several local U.S. elections November 5, with most involving increases in lodging taxes that apply to STRs. Here’s a roundup of the measures voters approved.

In Flagstaff, residents voted to continue the city’s 2% lodging, restaurant, and lounge (BBB) transaction privilege tax (TPT) through June 30, 2043. Flagstaff STR operators must obtain a Flagstaff operating license as well as a state TPT license, which must be included in all ads. 

Arizona STR hosts must collect state and local taxes from their guests and remit them to tax authorities. The state requires all short-term rental online marketplaces, such as Airbnb and Vrbo, to collect and remit state and local taxes on Arizona short-term rentals. For more on Arizona lodging taxes, see our state vacation rental tax guide.

Several communities within the Golden State voted to increase lodging taxes, which STR guests are required to pay. California doesn’t have a statewide lodging tax, so all transient occupancy taxes (TOTs) are administered by local jurisdictions. STR operators are responsible for collecting taxes from guests and remitting them to tax authorities. For more on California lodging taxes, see our state vacation rental tax guide.

STR-related ballot measures passed in California communities include:

In Auburn, residents voted in favor of raising TOT to 10% from 8%, with proceeds going to cover the costs of city services. The measure also extends TOT to STRs for the first time; previously, TOT did not apply to them. Airbnb and Vrbo do not collect TOT for their listings in Auburn.

Buellton will increase TOT to 14% from 12% for a period of 25 years, with proceeds going to the city’s general fund. Airbnb and Vrbo do not collect TOT for their listings in Buellton.

Carpinteria will increase TOT to 15% from 12%, with proceeds going to the general fund. Carpinteria STR hosts must apply for STR registration, obtain a TOT registration certificate, and file a quarterly TOT remittance from, even if no tax is due. Airbnb and Vrbo do not collect TOT for their listings in Carpinteria.

In Del Mar, voters approved a measure that will make STRs subject to TOT. Previously, TOT applied to hotels and motels, but not to lodging establishments with less than three units. Now, all STR operators will be required to collect TOT from guests and remit it to the city. Airbnb and Vrbo do not collect TOT for their listings in Del Mar.

Del Mar also passed a new STR law in September that’s awaiting California Coastal Commission certification. Under the ordinance, owners must register STRs with the city by December 31, 2024. They must apply for an STR permit within 60 days once the ordinance takes effect after Coastal Commission certification action. STRs are not allowed in residential zones.

Dunsmuir voters approved raising TOT to 12% from 10%. The proceeds will be used for law enforcement and fire services. Dunsmuir STRs are required to obtain a valid transient occupancy registration certificate, register for TOT, and file TOT reports either monthly or quarterly. Airbnb and Vrbo do not collect TOT for their listings in Dunsmuir.

Santa Barbara County will increase TOT in unincorporated parts of the county to 14% from 12%. Proceeds of the tax will be paid into the City’s general fund to fund core county services and infrastructure. Santa Barbara County STR operators are required to obtain an occupancy registration certificate from the Treasurer-Tax Collector’s office within 30 days after commencing business and file monthly TOT returns. Airbnb and Vrbo do not collect TOT for their listings in unincorporated Santa Barbara County.

In Santa Rosa, voters passed a measure increasing TOT to 11% from 9%, with proceeds going to the general fund. STR hosts must obtain a short-term rental permit and follow operating standards and requirements. The city is no longer accepting applications for non-hosted STRs. STR operators are required to register for TOT and remit TOT to the city quarterly. Airbnb and Vrbo do not collect TOT for their listings in Santa Rosa. 

In another ballot measure, Santa Rosa residents also voted in favor of changing the cost of a city business license. The measure requires operators of four or more STRs to obtain this license, with a fee of $200. STR operators that generate more than $500,000 per year must pay $500 for the certificate.

Solvang will increase TOT to 14% from 12%, with proceeds going to the general fund. Solvang STR operators must register for a TOT certificate and file monthly TOT returns. Airbnb and Vrbo do not collect TOT for their listings in Solvang.

In Manatee County, residents voted to raise the tourism tax to 6% from 5%. The tax applies to stays of less than six months. STR operators must create a tourism tax account with the county, collect the tax from guests, and remit it either monthly or quarterly. Airbnb and Vrbo do not collect tourism tax for their listings in Manatee County.

Florida vacation rental operators are also required to obtain a state business license, register for a state tax certificate, and collect and remit state-administered lodging taxes. For more on vacation rental lodging taxes in Florida, see our state vacation rental tax guide.

Voters in Portland, Maine, passed a measure amending rules for STRs. The amendment changes the rules for registration with the city, including requiring STR operators to provide a notarized primary residence affidavit for properties that are owner-occupied, along with state-issued identification and proof of homestead exemption. The new rules go into effect September 1, 2025.

Beyond registration requirements, Portland places limits on the number of non-owner-occupied STRs. All Maine STR operators must register with Maine Revenue Services, collect sales tax from guests, file sales tax returns, and remit the tax. Airbnb and Vrbo collect sales tax on behalf of hosts for Maine listings at the time of payment. For more on vacation rental lodging taxes in Maine, see our state vacation rental tax guide.

St. Louis voters approved a new 3% fee on STRs, with at least half of the proceeds going to an affordable housing fund and the rest going to other housing initiatives. St. Louis STRs are also subject to state sales and lodging taxes and the city’s hotel-motel room tax. STR hosts are required to collect the taxes from their guests and remit them to the proper tax authorities. While Airbnb collects state and local taxes for its St. Louis listings, Vrbo does not. Operators are responsible for collecting and remitting taxes that aren’t collected for them. For more on vacation rental lodging taxes in Missouri, see our state vacation rental tax guide.

Avalara MyLodgeTax can help STR hosts automate and simplify lodging tax compliance on the local and state level, including tax registration and filing. If you have tax questions related to vacation rental properties, drop us a line and we’ll get back to you with answers.