Item #08
Date: September 15, 2026
To: Mayor and City Council
From: Jim Schaad, City Manager
Subject: Short-Term Rental Facilitator Reporting Ordinance Recommendation:
Pass a motion to waive the full reading and introduce an ordinance adding Section 3.12.065 to the Marysville Municipal Code to implement the Short-Term Rental Facilitator Act of 2025 and require shortterm rental facilitator reporting.
Rationale for Recommendation:
The proposed ordinance would give the City a reliable means of identifying short-term rentals operating through online platforms and determining whether the operators are registered, reporting, and remitting the City's existing transient occupancy tax. It does not establish a new tax or create a broader short-termrental land-use or operating-permit program.
Background:
Chapter 3.12 of the Marysville Municipal Code imposes a 10 percent transient occupancy tax on lodging occupied for 30 consecutive days or less. The chapter's definition of hotel includes tourist homes or houses, apartment houses, and similar structures or portions of structures used for transient lodging.
Operators are required to register with the City, collect the tax, file quarterly returns, and remit the tax to the City.
Online platforms such as Airbnb and Vrbo generally do not display the exact property address before a reservation is made. As a result, the City may be aware that short-term rentals are being advertised in the Marysville area but cannot reliably determine which listings are located within the City, whether multiple listings represent the same property, or whether an operator has complied with the City's registration and tax requirements.
Senate Bill 346 enacted the Short-Term Rental Facilitator Act of 2025, Government Code section 50990 et seq., effective January 1, 2026. The Act is not self-executing. A city must adopt an ordinance making it applicable within its jurisdiction before requiring facilitators to provide the authorized information.
Discussion & Analysis:
The proposed ordinance would add Section 3.12.065 to the Municipal Code and make the state Act applicable within Marysville. Upon request by the City's Tax Administrator, a qualifying short-term rental facilitator would be required to provide quarterly reports identifying the physical address and nine-digit ZIP Code of each short-term rental facilitated within the City during the reporting period.
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When an address is insufficient to identify a particular rental, the City could request the property's assessor parcel number, the listing URL, and limited information needed to distinguish an accessory dwelling unit, guest house, timeshare unit, or unit in a multifamily property. Facilitators would also be required to display any applicable City permit or license number and the City's transient occupancy registration certificate number on each listing.
After receiving the first reports, staff would:
Confirm which reported properties are within the incorporated City limits and eliminate duplicate listings; Compare the reported properties with existing transient occupancy registrations and City records; Notify unregistered operators of the existing registration, collection, reporting, and remittance requirements;
Confirm whether any platform is already collecting or remitting Marysville TOT and how those payments are attributed; and
Establish a consistent approach, in consultation with the City Attorney, for prospective compliance and any review of prior-period liabilities.
The ordinance is limited to facilitator reporting and enforcement of the City's existing TOT requirements.
It does not establish zoning restrictions, rental-day limits, owner-occupancy requirements, neighborhood operating standards, or a separate discretionary short-term rental permit.
Environmental Review:
The ordinance is not a project subject to the California Environmental Quality Act under State CEQA Guidelines section 15378 because it establishes an administrative reporting and tax-enforcement mechanism without the potential to cause a direct or reasonably foreseeable indirect physical change in the environment. Alternatively, it is exempt under the common-sense exemption in State CEQA Guidelines section 15061(b)(3).
Alignment with City Council Goal(s):
Goal #1 – Increase Fiscal Sustainability
Legal Review:
The draft ordinance is subject to review and approval as to form by the City Attorney. In particular, the City Attorney should confirm the proposed administrative-fine procedure and its relationship to the existing enforcement provisions in Chapter 3.12.
Fiscal Impact:
Adoption of the ordinance has no significant direct fiscal cost beyond staff time and any optional assistance from the City's tax consultant. It may result in additional TOT revenue by identifying operators that are not currently registered or remitting tax.
A preliminary, unverified review suggested approximately 20 apparent short-term-rental listings associated with Marysville. For illustration only, if 20 distinct units averaged $200 per occupied night and 40 percent occupancy, annual taxable rent would be approximately $584,000 and TOT at the City's current 10 percent rate would be approximately $58,400. This is not a revenue forecast. Actual revenue will depend on the number of distinct properties within City limits, availability, occupancy, taxable charges, exempt or longer-term stays, duplicate listings, and whether any tax is already being collected through a platform.
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Attachments:
1) Ordinance adding Marysville Municipal Code Section 3.12.065 – Short-Term Rental Facilitator Reporting