Short-term rentals (STRs) are defined as dwelling units or portions thereof used for lodging accommodations for transient occupancy, for compensation, for a period of less than thirty consecutive days. STRs are subject to the City’s 10% lodgers’ tax, in lieu of sales tax. At the Council Study Session on May 2, 2022, Council discussed the possible reduction of the STR lodgers’ tax. At that meeting, Council agreed to retain the current 10% lodgers’ tax rate for STRs, and dedicate the STR portion of the General Fund lodgers’ tax rate (5%) to housing and/or homelessness purposes and to further refine the purpose at a later date.