An act to add Chapter 4.6 (commencing with Section 50990) to Part 1 of Division 1 of Title 5 of the Government Code, relating to local government.
Summary
SB 346 creates the “Short-Term Rental Facilitator Act of 2025” and authorizes cities, counties, and cities and counties to adopt local ordinances aimed at improving enforcement of transient occupancy taxes on short-term rentals booked through online platforms and similar marketplaces. The bill defines “short-term rental facilitator” broadly to cover entities that connect guests and hosts, process payments, list properties, set prices, take reservations, or otherwise operate the marketplace for short-term stays of 30 days or less.
If a local agency adopts an ordinance under the new chapter, the facilitator must, on request, report the physical address of each short-term rental, including the nine-digit ZIP Code, and provide additional identifying information such as assessor parcel number, listing URL, or unit-specific details if needed to identify the property. The bill also requires listings to display any applicable local license number and transient occupancy tax certification, and it allows local agencies to impose administrative fines for noncompliance and to audit facilitator records when the facilitator is responsible for collecting and remitting the tax. The chapter expressly does not preempt local governments from adopting different or more expansive rules governing short-term rentals or tax collection.
Impact
SB 346 adds Chapter 4.6 to the Government Code, creating a state statutory framework that local agencies may opt into by ordinance to obtain property-level information from short-term rental facilitators and strengthen transient occupancy tax administration. It affects cities, counties, and city and county governments, as well as online short-term rental platforms and related marketplace operators, by imposing reporting, listing-disclosure, and potential audit obligations where a local ordinance is in place. The bill also clarifies that these state provisions do not limit local governments from adopting other short-term rental or tax-enforcement ordinances.
Sentiment
The bill appears to have been broadly supported and noncontroversial in the legislative process. The voting history shows unanimous or near-unanimous approval at each recorded stage, including committee votes and floor votes in both houses, and the measure was ultimately chaptered by the Governor. The bill’s findings also frame it as a tax-enforcement tool consistent with existing appellate precedent, suggesting a policy rationale that likely helped build consensus.
Contention
The main policy issue underlying SB 346 is the balance between local tax enforcement and the compliance burden on short-term rental platforms. Supporters would view the bill as giving cities and counties the information needed to identify rentals and collect transient occupancy taxes more effectively, while platform operators could be concerned about reporting obligations, audits, and the need to disclose license and certification information in listings. The bill addresses potential legal objections by citing the HomeAway v. City of Santa Monica decision and by making clear that it does not preempt stricter or different local regulation.
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An act to add Article 6 (commencing with Section 53399) to Chapter 2.99 of Part 1 of Division 2 of Title 5 of the Government Code, relating to local government.
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