Staff Report
City Council
Item No. 4.B
Meeting Date: January 14, 2026
From: Andrew Firestine, Director of Community and Economic Development Title: Adoption of Local Implementing Provisions for the Short-Term Rental Facilitator Act of 2025 (SB 346)
RECOMMENDATION:
Staff recommends the City Council introduce for first reading, read by title only, and waive further reading of an ordinance adding Section 5.96.090 to Chapter 5.96 of Title 5 of the Cathedral City Municipal Code to implement the Short-Term Rental Facilitator Act of 2025 (SB 346), and direct staff to return for second reading and adoption.
BACKGROUND:
The City regulates Short-Term Vacation Rentals (“STVRs”) through Chapter 5.96 of the Cathedral City Municipal Code (“CCMC”). Operators of permitted STVRs must obtain and maintain an STVR permit and comply with program requirements, including transient occupancy tax (“TOT”) remittance pursuant to Chapter 3.24 of the CCMC.
In 2025, the California Legislature enacted Senate Bill 346, adding Government Code section 50990 et seq., known as the Short-Term Rental Facilitator Act of 2025. The Act authorizes cities to adopt local provisions making the Act operative within the city’s jurisdiction. If adopted, a city may require short-term rental listing platforms and other facilitators to provide specified property identification information to the City for TOT administration and enforcement and to display City-issued permit identifiers within listings.
The proposed ordinance would formally implement the Act locally and establish reporting and listing-credential requirements for short-term rental facilitators operating within Cathedral City.
DISCUSSION:
The proposed ordinance adds Section 5.96.090 to the CCMC to:
Adopt and apply the Short-Term Rental Facilitator Act of 2025 within Cathedral City; Require short-term rental facilitators, upon request, to provide the City with:
The physical address and nine-digit ZIP code of each listed short-term rental; and
If needed to confirm a location, the assessor parcel number, listing URL, and limited additional identifying details; and
Require short-term rental facilitators to display the City-issued STVR permit number in each listing.
The information provided under the ordinance will support:
TOT administration and enforcement
Verification of permitted versus unpermitted listings
Improved transparency in the short-term rental marketplace Failure to comply with the reporting or display provisions may result in administrative citation under Chapter 13.58 of the CCMC.
The ordinance does not alter the City’s existing STVR permitting framework or TOT requirements. Rather, it improves the City’s ability to ensure lawful operation and equitable tax compliance among STVR operators and facilitators
FISCAL IMPACT:
The ordinance is expected to improve the accuracy and efficiency of TOT administration and compliance monitoring. Any incremental administrative workload will be absorbed within existing staff capacity. No new appropriations are required.
FIVE-YEAR STRATEGIC PLAN:
n/a
ATTACHMENTS:
1. Draft Ordinance — Adding Section 5.96.090 to CCMC Chapter 5.96 (SB 346 Implementation)