Oppose SB 584 : Short-Term Rental Tax Law — California Travel Association

Oppose SB 584: Short-Term Rental Tax Law

UPDATE: As of June 26, 2023, SB 584 was held in Assembly Housing Committee by the author and will be a two-year bill. No action will take place before January 2024, if at all.

California Travel Association respectfully opposes SB 584 (Limon), which would impose a 15% tax on short-term rentals in California to fund labor force housing, beginning January 1, 2025. Higher taxes on short-term rentals will make California a much less competitive destination.

By imposing this unfairly steep tax, SB 584 will put an important lodging option out of reach for many travelers, disproportionately affecting lower-income travelers and families. Some regions rely on short-term vacation rentals to increase the supply and variety of accommodations where hotels are limited. Creating a short-term vacation rental tax will disincentivize these kinds of stays, leading to less visitation in destinations that rely on tourism. Visitors spend their money at local restaurants, stores, and attractions. Fewer visitors will lead to decreased spending which will drive down local business and jeopardize jobs in the hospitality sector.

For additional information on SB 584, please refer to these FAQs.