When visitors spend a night at a Plumas County motel or resort, they pay fees on top of the cost of their lodging. These funds are designed to benefit Plumas County. Some of the fees collected from visitors go into the county general fund to help support the sheriff’s office, roads and libraries. Others are specially assigned to promote tourism, a pillar of the local economy.
But some lodge owners are collecting only a portion of those fees from visitors. Airbnb, Inc., an online marketplace for homestays, collects the county’s 9% Transient Occupancy Tax, said County Administrative Officer Debra Lucero. But for the past four years Airbnb, Inc. has not been collecting a special 2% assessment fee that supports Plumas County Tourism, formerly known as Feather River Tourism Association.
As a result, Plumas County is missing out on funds the tourism association uses to market places and events that draw travelers to the area, said Sharon Roberts, the association’s treasurer. She estimated the lost fees at $50,000 a year, a figure she called “a low ballpark.”
After weeks of delay and communication gaffes, the Plumas County Board of Supervisors sent a letter Oct. 8 to Airbnb, Inc. formally notifying the organization of its fiscal responsibility. The supervisors requested a meeting “to discuss Airbnb’s collection and remittance process.” The letter cited Madera and Riverside counties as places where Airbnb, Inc. has exemplary contracts authorizing county officials to collect assessments.
Signed by Supervisor Greg Hagwood, chair of the board, the letter asked Airbnb, Inc. to confirm that it received it. It also asked the international lodging organization to schedule a meeting with Lucero within 15 days.
“I wish it could be 10 days,” said Susan Bryner, Plumas County Tourism president.
Lucero agreed: “We need to get this done. It’s been four years.”
The Plumas Sun contacted Airbnb for comment but did not get a response by its deadline.
Years of frustration
Lucero is not the only one frustrated. Roberts was visibly annoyed when she addressed the supervisors Oct. 1. The Airbnb payment issue has been raised by the tourism association for years. It was discussed at the board’s Sept. 17 meeting, when Roberts suggested a simple letter notifying Airbnb that it is out of compliance with Plumas County’s 2020 ordinance adopting the fee.
“There must be a way to fix this,” she said. It’s possible they are simply not aware of the ordinance, Roberts added.
Some individual owners of Airbnbs are collecting the 2% fee and passing it on to the county. It’s the corporate organization that is the target of the complaint, Roberts said.
Plumas County Treasurer-Tax Collector Julie White said she has been trying to get in touch with Airbnb, Inc. for years with little success. “They know they have to pay this <fee>. They just choose not to,” she told the board of supervisors Sept. 17.
The supervisors agreed to send a letter designating Airbnb, Inc. out of compliance with Plumas County’s 2% assessment fee. Deputy County County Counsel Sara James agreed to review the contract and draft a letter for the board’s Oct. 1 meeting.
The issue was on the Oct. 1 agenda for follow-up discussion. Unfortunately, the draft letter was not included in the board’s backup material for Oct. 1. Interim County Counsel Josh Brechtel took responsibility.
“It’s my mistake. I didn’t put it in the backup,” he said. He proposed moving the discussion to Oct. 8.
The board was about to go on to the next agenda item when Roberts spoke up. “This has been going on for four years,” she said.
While the vacation rentals giant dodges fees, local small businesses who adhere to the law are forced to pass the cost along to customers. They are “completely fed up” with the double standard, she added.
Some of the problem may lie with the county treasurer’s office, which has not consistently been collecting the 2% tourism assessment, said Roberts. She cited a misunderstanding within the office over notifying lodge owners of the fee.
Supervisor Tom McGowan agreed that the current system is not fair to those lodge owners who do pay the assessment. “The sooner we can get this resolved the better,” he said.
Third meeting gets it done
The supervisors approved a letter of non-compliance at their Oct. 8 meeting on a motion by McGowan. The letter gives Airbnb, Inc. 15 days to respond to letters sent by certified mail to two different Airbnb addresses. By Oct. 28 Airbnb had received the letters but had not contacted county officials to schedule a meeting, Roberts said.
