Larry Klein
Mayor
Linda Sell
Vice Mayor
Alysa Cisneros
Councilmember
Richard Mehlinger
Councilmember
Murali Srinivasan
Councilmember
Charlsie Chang
Councilmember
Eileen Le
Councilmember
October 8, 2025
The Honorable Gavin Newsom
Governor
California State Capitol
Sacramento, CA 95814
RE: SB 346 (Durazo): Local agencies: transient occupancy taxes: short-term rental facilitator. REQUEST FOR SIGNATURE
Dear Governor Newsom,
On behalf of the City of Sunnyvale, we request your signature for SB 346, which would better equip cities to enforce local ordinances related short -term rentals, including the collection and remittance of transient occupancy taxes (TOT).
Short-term rentals are regulated exclusively at the local level via the adoption of an ordinance that often includes regulations on permitting, tax compliance, noise, parking, occupancy, as well as other responsibilities for hosts and short-term rental facilitators. In some instances, ordinances limit the number of short -term rentals allowed to operate lawfully, other ordinances ban short -term rentals entirely. Current Sunnyvale policy places a high priority on supporting a robust code enforcement program to maintain and enhance the appearance of neighborhoods (Source: Sunnyvale General Plan, Policy LT-
4.1a).
Short-term rentals can present numerous challenges to neighborhoods and adjacent property owners. They may create additional noise, traffic, parking, and public safety issues, decrease available housing stock, and in some cases turn residential neighborhoods into de -facto hotel rows, collectively creating additional demands on local public service providers.
Unfortunately, the enforcement of TOT ordinances and the collection and remittance of these taxes from short-term rentals can be inconsistent, even when voluntary collection agreements are in place with a short-term rental facilitator. Cities lack access to property addresses or other property-related information, even under these agreements, resulting in a difficult choice to either accept tax payments without any way to verify their Attachment 4
The Honorable Gavin Newsom, Governor
October 8, 2025
accuracy and legality or attempt to collect taxes directly from property owners—a costly and time -consuming process. Meanwhile, short -term rental facilitators have full knowledge of these properties’ locations and resist disclosing this information. Cities can only compel short -term rental facilitators to disclose this critical information through certain legal action, such as subpoenas. This is not how oversight of public dollars should work.
SB 346 would address the above issues by providing cities with the physical address of each short-term rental listed on the facilitator’s website and full audit authority of TOT dollars. These changes would ensure the correct amount of TOT is being collect ed and remitted and would allow for more efficient enforcement against unlicensed units. For these reasons, the City of Sunnyvale requests you sign SB 346 into law.
Please do not hesitate to contact me or Matt Paulin, Director of Finance, at [email protected], if you have any questions.
Sincerely,
Larry Klein
Mayor
cc: Senator Dr. Aisha Wahab
Assembly Member Patrick Ahrens
Senator María Elena Durazo
Sunnyvale City Council
Tim Kirby, City Manager
Sarah Johnson-Rios, Assistant City Manager
Matt Paulin, Director of Finance
Attachment 4