The proposal has revived the debate over Airbnb and its role in the housing crisis.
, a Santa Barbara Democrat, would impose a 15% tax on short-term rentals — the homes and rooms that owners rent out like hotels for 30 days or less at a time — starting in 2025. This statewide surcharge, an addition to the local transient occupancy taxes that most communities already require, could generate an estimated $150 million annually to build or rehabilitate low- and middle-income housing.
But the prospect of a tax that rental platforms worry would put them at a disadvantage to hotels has sent them scrambling, with Airbnb rallying its hosts in recent weeks to oppose a bill it argues would “hurt the local tourism economy.” The short-term rental tax would fund grants for public entities and nonprofit providers to create affordable housing projects — primarily through new construction, but also by fixing up existing buildings — that would be permanently set aside for low- and middle-income renters.
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