Chapter 4.6 - The Short-Term Rental Facilitator Act of 2025

California Government Code — §§ 50990-50996

Sections (7)

Added by Stats. 2025, Ch. 751, Sec. 2. (SB 346) Effective January 1, 2026.

(a)This chapter shall be known, and may be cited, as the “Short-Term Rental Facilitator Act of 2025.”

(b)This chapter shall only apply to a local agency that adopts an ordinance that makes the provisions of this chapter applicable within its jurisdictional boundaries.

§ 50991

Added by Stats. 2025, Ch. 751, Sec. 2. (SB 346) Effective January 1, 2026.

All of the following definitions shall apply for purposes of this chapter:

(a)“Hotel” means a commercially operated hotel, motel, bed and breakfast inn, or similar transient lodging establishment, when all or part of the transient occupancy is or would be subject to tax under Section 7280 of the Revenue and Taxation Code. For purposes of this chapter, a “hotel” shall not include a short-term rental facilitator as defined in subdivision (g).

(b)“Local agency” means a city, county, or city and county.

(c)“Marketplace” means a physical or electronic place, including,

but not limited to, a store, booth, internet website, catalog, television or radio broadcast, or a dedicated sales software application, where a marketplace seller facilitates the occupancy of a short-term rental for delivery in this state regardless of whether the short-term rental, marketplace seller, or marketplace has a physical presence in this state.

(d)“Ordinance” refers to an ordinance of a local agency imposing a transient occupancy tax.

(e)“Purchaser” means a person who is required to pay the transient occupancy tax and who uses a short-term rental facilitator to facilitate the occupation of a short-term rental within the jurisdiction of the local agency imposing the transient occupancy tax.

(f)“Short-term rental” means the occupancy of a home, house, a room in a home or house, a campsite, or other lodging that is not a hotel in this state for a period of 30 consecutive days or less and under any other circumstances specified by the local agency in its ordinance that is facilitated by a short-term rental facilitator.

(g)“Short-term rental facilitator” means a person or entity that facilitates for consideration, regardless of whether it is deducted as fees from the transaction, the occupancy of a short-term rental that is not owned by the person facilitating the rental, through a marketplace operated by the person or a related person or entity, and that does both of the following:

(1)Directly or indirectly, through one or more related persons, engages in any

of the following:

(A)Transmits or otherwise communicates the offer or acceptance between the purchaser and the operator.

(B)Owns or operates the infrastructure, electronic or physical, or technology that brings purchasers and operators together.

(C)Provides a virtual currency that purchasers are allowed or required to use to facilitate the occupancy of a short-term rental from the operator.

(D)Software development or research and development activities related to any of the activities described in paragraph (2), if such activities are directly related to facilitating short-term rentals.

(2)Directly or indirectly, through one or more related persons, engages in any of the following activities with respect to facilitating short-term rentals:

(A)Payment processing services.

(B)Listing homes, houses, or rooms in homes or houses, campsites, or other lodgings that are not a hotel or motel, and that are not owned by that person or a related person, for rental on a short-term basis.

(C)Setting prices.

(D)Branding short-term rentals as those of the short-term rental facilitator.

(E)Taking orders or reservations.

(h)“Transient Occupancy Tax” means a tax imposed by a local agency on the privilege of occupying a short-term rental as specified and defined by the local agency in its ordinance.

§ 50992

Added by Stats. 2025, Ch. 751, Sec. 2. (SB 346) Effective January 1, 2026.

For purposes of this chapter, a person is related to another person if both persons are related to each other pursuant to Section 267(b) of Title 26 of the United States Code, as that section was amended by Public Law 114-113, and the regulations thereunder.

§ 50993

Added by Stats. 2025, Ch. 751, Sec. 2. (SB 346) Effective January 1, 2026.

(a)Upon request by the local agency, each short-term rental facilitator shall report, in the form and manner prescribed by the local agency, the physical address, including nine-digit ZIP Code, of each short-term rental during the reporting period.

(b)If the information provided by the

short-term rental facilitator pursuant to subdivision (a) is not sufficient for the local agency to identify a specific short-term rental at the provided address, the local agency may request the following:

(1)The assessor parcel number of each short-term rental.

(2)The URL associated with the specific short-term rental listing.

(3)Information exclusively related to the identification of an accessory dwelling unit, guest house, or single unit of a timeshare or multifamily housing project located at a single address, which is located at the address or assessor parcel number requested.

(c)Except as provided in subdivision (d), the reporting period in subdivision (a) may be no more frequently than in intervals of every 3 months within a 12-month period.

(d)The reporting period in subdivision (a) may be monthly if a local agency requires remittance of transient occupancy tax monthly.

(e)A local agency may make the failure of a short-term rental facilitator to report the

information required by this section subject to an administrative fine or penalty pursuant to Section 53069.4.

§ 50994

Added by Stats. 2025, Ch. 751, Sec. 2. (SB 346) Effective January 1, 2026.

A short-term rental facilitator shall include in the listing of a short-term rental any applicable local license number associated with the short-term rental and any transient occupancy tax certification issued by a local agency.

§ 50995

Added by Stats. 2025, Ch. 751, Sec. 2. (SB 346) Effective January 1, 2026.

(a)A local agency may conduct an audit or otherwise examine the records of the short-term rental facilitator documenting the receipt of the transient occupancy tax due and payable to the local agency if the short-term rental facilitator is responsible for collecting and remitting the transient occupancy tax to the local agency pursuant to a local ordinance or collection agreement.

(b)Any costs associated with an audit or examination shall be paid for by the local agency.

§ 50996

Added by Stats. 2025, Ch. 751, Sec. 2. (SB 346) Effective January 1, 2026.

Nothing in this chapter shall be construed to preempt a local agency from adopting an ordinance that regulates short-term rentals, short-term rental facilitators, or the payment and collection of transient occupancy taxes in a manner different from the procedures prescribed in this chapter.