City of Madison - File #: 46226

• File #: 46226
• Version: 1
• Name: Enter into a one-year contract with up to one (1) one-year renewal with Host Compliance LLC to identify units being rented to tourists or guests such as Airbnb, VRBO, HomeAway, etc. at a cost of approximately $24,900.00 per year
• Type: Resolution
• Status: Passed
• File created: 2/21/2017
• In control: FINANCE COMMITTEE
• On agenda: 6/20/2017
• Final action: 6/20/2017
• Enactment date: 6/21/2017
• Enactment #: RES-17-00515
• Title: Authorizing the Mayor and City Clerk to enter into a one-year contract with one (1) one-year renewal with Host Compliance LLC for the purpose of locating and identifying dwelling units or portions of dwelling units in the city being rented to tourists or guests on web platforms such as Airbnb, Vacation Rental By Owner (“VRBO”), HomeAway, and other similar web platforms at a cost of approximately $24,900.00 per year.
• Sponsors: Paul R. Soglin, Michael E. Verveer, Mark Clear, Ledell Zellers, Amanda Hall, Matthew J. Phair

Date	Ver.	Action By	Action	Result
6/20/2017	1	COMMON COUNCIL	Adopt	Pass
6/12/2017	1	FINANCE COMMITTEE	RECOMMEND TO COUNCIL TO ADOPT - REPORT OF OFFICER	Pass
5/11/2017	1	BOARD OF HEALTH FOR MADISON AND DANE COUNTY	Return to Lead with the Recommendation for Approval
3/1/2017	1	BOARD OF ESTIMATES (ended 4/2017)	Referred
2/28/2017	1	COMMON COUNCIL	Refer	Pass
2/21/2017	1	Attorney's Office	Referred for Introduction

Fiscal Note
The proposed resolution authorizes a contract between the City and Host Compliance LLC for assistance in identifying and monitoring properties within the City of Madison that are renting their properties through web sharing platforms. Funding for the contract was authorized in the 2017 Adopted Budget within the Room Tax Commission.
Title
Authorizing the Mayor and City Clerk to enter into a one-year contract with one (1) one-year renewal with Host Compliance LLC for the purpose of locating and identifying dwelling units or portions of dwelling units in the city being rented to tourists or guests on web platforms such as Airbnb, Vacation Rental By Owner (“VRBO”), HomeAway, and other similar web platforms at a cost of approximately $24,900.00 per year.
Body
WHEREAS, an estimated 500-600 dwelling units or portions of dwelling units are available in the City of Madison for rent to tourists;
WHEREAS, the owners of these homes or spaces (commonly referred to as “hosts”) usually list the rental on web sharing platforms such as Airbnb, VRBO, and other similar websites;
WHEREAS, hosts are required to pay room tax under Madison General Ordinance 4.21;
WHEREAS, hosts are required to comply with city zoning regulations related to tourist rooming houses contained in Madison General Ordinances Secs. 28.151 and 28.211;
WHEREAS, hosts are required to obtain certain health permits from Public Health Madison Dane County;
WHEREAS, only approximately 15-20 hosts are currently compliant with the city regulations listed above;
WHEREAS, if hosts do not voluntarily comply with the city’s regulations, it is very difficult to locate and identify hosts for enforcement purposes because the web platforms do not provide information identifying the host or the rental location;
WHEREAS, Airbnb has agreed to enter into an agreement with the City to collect room tax directly from its hosts (see Legistar File 46211), but this agreement does not include room tax payments for bookings...