Short-Term Rental Owner Settles Lawsuit With City of St. Helena

From The City of St. Helena: In 2012, the City of St. Helena adopted an ordinance establishing permit requirements for the short-term rental (less than 30 days) of single family homes. The ordinance prohibits short-term rentals (STRs) without a permit and requires the collection and payment of transit occupancy taxes (TOTs). The City has been diligent in responding to complaints about illegal STRs.

On July 18, 2018, the City issued a letter to the owners/managers of a single-family property located at 1512 Hudson Avenue, who had been renting the property on a short-term basis without the requisite permit. The City sought enforcement of Chapter 17.134 of the St. Helena Municipal Code (SHMC), which provides for civil penalties related to illegal short-term rentals, as well as unpaid TOTs, penalties and interest due under the City's TOT Ordinance, SHMC chapter 3.28.

On October 4, 2018, the owners/managers of the property entered into an interim stipulation with the City to discontinue any ongoing violations of the STR ordinance. The City is pleased to report that the parties now have entered into a settlement agreement concluding this matter. Under the settlement agreement, the property owners/managers are required (1) to permanently cease and desist from engaging in short-term rental activity without a permit issued pursuant to the City’s STR Ordinance, and (2) to pay the City $217,698.71 in taxes, penalties and attorney’s fees owed under the TOT and STR Ordinances.

Mayor Geoff Ellsworth said: “The City is pleased with this short-term rental settlement. Coupled with review of all identified illegal short-term rentals, I believe the City continues to send a strong message to the community that we will not tolerate such commercial violations of the City’s laws. There are an established number of legal short term rentals that the City recognizes.”