The Santa Barbara City Council issued another round of subpoenas Tuesday with the intent of collecting transient occupancy taxes from short-term vacation rental owners and operators who haven’t paid up.
The TOT is traditionally collected from hotels and motels — places where visitors pay to stay for up to 30 consecutive days — but with the explosion of the vacation rental industry, cities have been levying the tax on homeowners and operators as well, even as they grapple with regulating them.
The subpoenas were issued to collect documents that include rental rates and the duration of renters’ stays, which would shed light on how much tax revenue the owners and operators under scrutiny owe.
The documents would also allow the city to get an idea of the extent to which the city ordinance banning short-term vacation rentals has been defied.
Subpoenaed documents would also shed light on the effects the industry has on the local housing market and “on the character of existing residential neighborhoods,” according to a staff report.
Council is looking for information on rentals from January 2013 through the present. Most vacation rentals are advertised online, and the websites that list them have been the target of the city’s crackdown.
The subpoenaed companies have until June 28 to comply before potentially facing punishment for criminal contempt.
Last week, council received certified copies of previously subpoenaed records, which were requested in August.
The City Council ordered subpoenas for over 90 websites, including industry giant Airbnb, that listed vacation rentals in the city, requiring them to produce copies of records relating to vacation rental operations.
That same month, council agreed to enforce its prohibition after several years of turning a blind eye. In June, the council unanimously voted to uphold the ban.
Many rental property owners came out to oppose the subpoenas last year, citing privacy violations.
City Attorney’s Office staff had said that they were primarily interested in information on owners, rates, and the time periods properties were rented out.
The South Coast has been trying to regulate the burgeoning short-term vacation rental industry. Last month, Carpinteria placed a temporary moratorium on the rentals.
While many owners insist on the freedom to do what they want with their properties, residents have argued the rentals degrade their neighborhoods’ wellbeing and sense of community.
— Noozhawk staff writer Sam Goldman can be reached at sgoldman@noozhawk.com. Follow Noozhawk on Twitter: @noozhawk, @NoozhawkNews and @NoozhawkBiz. Connect with Noozhawk on Facebook.