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File #: ID 24-1302    Version: 1 Name:
Type: Action Item Status: Passed
File created: 9/17/2024 In control: City Council
On agenda: 9/26/2024 Final action: 9/26/2024
Title: Approve a Voluntary Collection Agreement with HOMEAWAY.COM, INC. (Vrbo.com) and its subsidiaries for collection of City of Fresno Transient Occupancy Tax and authorize the City Controller to execute the Agreement.
Sponsors: Finance Department
Attachments: 1. 24-1302 City of Fresno Voluntary Collection Agreement

REPORT TO THE CITY COUNCIL

 

 

FROM:                     GEORGEANNE A. WHITE, City Manager

Office of the Mayor & City Manager

 

 

BY:                                          SANTINO DANISI, City Controller/Finance Director

Finance Department

 

 

SUBJECT

Title

Approve a Voluntary Collection Agreement with HOMEAWAY.COM, INC. (Vrbo.com) and its subsidiaries for collection of City of Fresno Transient Occupancy Tax and authorize the City Controller to execute the Agreement.

 

Body

RECOMMENDATION

 

Staff recommends that the City Council approve a voluntary collection agreement with Vrbo.com for the collection of City of Fresno Transient Occupancy Tax and authorize the City Controller, or designee, to sign the agreement on behalf of the City.  The agreement will facilitate the reporting, collection, and remittance of transient occupancy tax in accordance with Section 7-604 of the Fresno Municipal Code by Vrbo.com to the City of Fresno.

 

EXECUTIVE SUMMARY

 

Article 6 of the Fresno Municipal Code establishes the Transient Room Tax Ordinance whereby any person establishing occupancy for a period of thirty consecutive days or less shall pay a Transient Occupancy Tax to the City of Fresno.  Many occupants utilize internet-based platforms such as Vrbo.com to book their stays where hosts offer accommodations for guests and collect fees associated with the stay.  The agreement with Vrbo.com will require the reporting, collecting and remittance of the Transient Occupancy Tax associated with any applicable stays booked through their platform.  Vrbo.com requires this agreement in order to execute the activities aforementioned.

 

BACKGROUND

 

On April 27, 2023 City Council approved an amendment of Section 7-602 of the Fresno Municipal Code which expanded the definition of ‘Operator’ to include internet-based crowd sourcing platforms such as Vrbo.com.  This change requires the collection and remittance of the required Transient Occupancy Tax to the City of Fresno by the crowd sourcing platform.

 

Operators of short-term rentals are required to register for a short-term rental permit if intending to rent space for 31 days or more in a year.  Additionally, the operators are required to collect and remit Transient Occupancy Tax to the City of Fresno.

 

The agreement with Vrbo.com will require the collection of the Transient Occupancy Tax to occur at the time of booking and will result in increased compliance with Article 6 of the Fresno Municipal Code and expedite tax remittance for amounts owed.

 

ENVIRONMENTAL FINDINGS

 

Pursuant to California Environmental Quality Act (CEQA) Guidelines Section 15378, this item is not a project for the purposes of CEQA.

 

LOCAL PREFERENCE

 

Local preference was not implemented because this is not an agreement for materials, supplies, equipment or services.

 

FISCAL IMPACT

 

It is anticipated that the agreement will result in increased collection of Transient Occupancy Tax.

 

Attachment:                     

City of Fresno Voluntary Collection Agreement