🎯 STRisker: Bulletin - Simi Valley, CA
Simi Valley Eyes STR Tax Collection Boost - Prepares to Enforce Transit Occupancy Tax on STRs
Simi Valley Eyes STR Tax Collection Boost
Simi Valley’s City Council took a big step toward tightening its grip on short-term rental oversight during its August 5 meeting, thanks to a new tool handed down from Sacramento.
At the heart of the discussion was Senate Bill 346, fresh legislation that empowers cities to go toe-to-toe with vacation rental platforms like VRBO and Airbnb over tax collection. Specifically, the bill lets municipalities pass ordinances requiring these companies to collect transit occupancy taxes (TOT) on behalf of the city.
Council Member Rhodes led the charge, pushing for staff to dig deep into what SB 346 could mean for Simi Valley. His main concern? Making sure any agreements with these big-name rental companies don’t water down the city’s ability to double-check that every tax dollar owed is actually being paid.
Rather than wait around for the bill’s fine print to be finalized, the council opted for a proactive approach. They agreed to tweak the city’s own rules right away—specifically, by adding short-term rentals into Chapter 5 of the city code for TOT collection. That means the city can start moving immediately on securing this revenue stream, even while the state’s process plays out.
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The move is more than just about cash flow; it’s about fairness and keeping local control. Supporters argue that if hotels have to collect and remit TOT, so should STR hosts. The council’s decision sets the stage for a more level playing field between traditional lodging and newer, app-driven options.
Next steps? City staff will return with a detailed breakdown of SB 346’s language, how it intersects with existing ordinances, and whether any extra guardrails are needed to safeguard Simi Valley’s audit rights. This follow-up will be key in hammering out the specifics of enforcement and cooperation with STR platforms.
By acting now, Simi Valley is signaling it won’t let tax dollars slip through the cracks—or leave neighborhood impacts unchecked—just because booking happens online. It’s a small but telling step in California cities’ growing effort to bring short-term rentals into the same regulatory fold as other lodging options.
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