City hotel tax revenue is down $10 million this year after the city’s tourism industry was ravaged by the COVID-19 pandemic. The City Council could lift its ban on un-hosted short term rentals which could bring in additional tax dollars to the city.
The City Council in June adopted the new law governing short-term rentals, which had technically been illegal in Long Beach but had operated—in some areas, with controversy—for some time.
The ordinance will allow for hosted stays to begin in the city by the end of the year, but the City Council is expected to vote again to potentially allow for un-hosted stays by early 2021.
An ordinance governing short-term rentals will limit un-hosted units to 1,000 citywide and provide for an opt-out option.
As written, the law would allow non-Long Beach residents to operate short term rental units in the city.
During the last budget cycle, the City Council redirected money intended for regulating short term rentals and now enforcement of the ordinance could be delayed by a year.
The law put into place by the City Council also limits hosts to having two non-primary residence units, and requires hosts to maintain $1 million in property liability insurance and register with the city, which will collect a transient occupancy tax of 12 percent on guest stays, much like it does with hotels in the city.
The meeting is primarily for the councilwoman to listen to what community members want for short-term rentals.
All options would apply a 12 percent tax on the short-term rentals, require that a city registration number be included in all listings and create a 24-hour complaint hotline for the city.
On Wednesday night, city officials will present possible regulation “packages” that could include any combination of rules.