Supervisor Chan advances amendment to short‑term rental tax rules; ordinance sent to full Board

Chair Supervisor Connie Chan moved and the Budget and Finance Committee forwarded to the full Board an amended ordinance that changes how short‑term rental hosts and reservation platforms collect and remit the city’s transient occupancy tax (TOT) and the newly applicable Tourism Improvement District (TID) assessment.

Amanda Fried, representing the Office of the Treasurer and Tax Collector, told the committee the change is intended to simplify filing and payment for hosts after a 2022 election made short‑term rentals subject to the TID as of Jan. 1, 2024. She said most TOT is already collected by “qualified website companies” (platforms that opt into the city’s program) and asked the Board to require those companies to collect and remit TID assessments on hosts’ behalf. For hosts who do not operate through a qualified website company, Fried said the proposal would require annual filing and payment of TOT and TID assessments rather than monthly filings.

Fried also requested the committee adopt a nonretroactivity amendment clarifying that the TID requirement for qualified website companies is not retroactive; Chair Chan offered that amendment and moved the ordinance, which passed on a roll call vote of Mandelmann Aye, Melgar Aye, Chan Aye.

The ordinance, as presented in committee, would:
- Require qualified website companies that opt into the city’s collection program to collect and remit TID assessments in addition to TOT; and
- Require hosts who do not use a qualified website company to file and pay TOT and TID assessments annually.

Fried said the treasurer’s office will post guidance and the declaration form on its website and that three platforms currently participate as qualified website companies. The ordinance also clarifies filing periods for other hotel operators.

The committee heard no public comments on the item and forwarded the amended ordinance to the Board with a positive recommendation. The full Board will receive the ordinance and the amendment language the treasurer’s office circulated.

Next steps: the amended ordinance will go to the full Board for consideration.