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The County’s general fund is directly benefited by short-term rentals. Transient occupancy tax (TOT) and sales tax are the biggest revenue sources for the County behind property taxes. In 2017, short-term rentals provided $1.4 million in transient occupancy taxes (TOT) to Monterey County. MCVRA estimates that TOT collections from short-term rentals will increase to approximately $5 million if a fair ordinance is enacted. This was the case in Santa Cruz County after it passed a fair ordinance. 

In addition, our visitor spending generates significant sales tax revenue. Thus, short-term rentals in Monterey County help pave our roads and provide fire, police, and medical services.

Short-term rentals also provide significant economic benefit to Monterey County that counts tourism as its number two industry. Our vacation rental guests stay longer and spend more than hotel guests. This results in many thousands of customers each year for restaurants, wineries, gift shops, art galleries, tourist attractions, and supermarkets. This translates into local jobs! Short-term rentals directly employ local housekeepers, gardeners, and handymen. Restrictive regulations would be devastating to families and the local economy.

MCVRA commissioned an analysis of the economic benefits of vacation rentals located throughout Monterey County. The study concluded that vacation rentals are a vital part of the County’s tourism economy benefitting the local economy by $131.8 million annually and supporting more than 1,400 jobs. Click to see the report.

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