Malibu California Real Estate News: Malibu Council Discusses Controversial Plans for Vacation Home Tax

Malibu City Council is discussing controversial plans to look at introducing a vacation home tax to solve the councils budget crisis.

The council is dealing with a $1.2 million shortfall. City staff at an Administration and Finance Subcommittee’s special meeting on Monday, May 11th recommended the city begin collecting taxes on the short term rentals of private homes beginning July 1. The tax amounts to 12 percent of the rental price of these vacation homes, and would add an estimated $200,000 to the city’s budget.

However, the State may the may decide to utilize eight percent, or $600,000, of the city’s property taxes to go towards its $40 billion budget shortfall, which would further decrease the city’s revenue.

The tax may be called the Transient Occupancy Taxes and may be levied on rental income from private homes leased for 30 days or less. The Malibu Municipal Code allows for such a tax, but the city has thus far only enforced it on hotels and motels. Property owners of the short-term rentals would be required to register with the city and obtain a transient occupancy registration certificate and pay a one time implementation fee of $25.

Other states do already levy tax on vacation properties leased on a short term basis. Florida for instance has an occupancy tax of 10%. Malibu City Council has said that it will work with local Real Estate Companies to help keep them updated on the progress of this Vacation Home Tax.

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If you are interested in purchasing a property or selling a property in Malibu, Pacific Palisades or the surrounding Beverly Hills/southern California area then please contact Judy Kunisaki for professional real estate advice in the Westside Los Angeles area, on 310-317-8396 or via her online contact form on her website.