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Auburn City Council passes short-term rental business license regulations

PHOTO BY JOSH FISHER / FOR THE OPELIKA OBSERVER

By Hannah Lester
hlester@opelikaobserver.com 

Ready to talk about short term rentals?

The Auburn City Council amended the city code, chapter 12, to include a category on short term rental business licensing regulations during its city council meeting Tuesday night. 

The amended chapter now includes regulations that require an annual business licensing fee set at a certain amount in a short-term non-primary rental or homestay. 

The amount will be fixed at “equal to a percentage of gross receipts set at 1/4 of 1% (gross receipts multiplied by .0025 provided that the minimum business license fee shall be $100.00 for businesses.”

The quarter of one percent is of the total revenue, said City Manager Megan Crouch.

The item was postponed from the last council meeting after Ward 5 Council Member Steven Dixon denied unanimous consent. He wanted to wait and confirm whether he should recuse himself from the vote, given he has run a short-term rental out of his home. 

Dixon did recuse himself from Tuesday’s vote. 

This business license ordinance will allow the city to begin enforcing the short-term rental ordinance that the council passed in March. The next step will be that the city sends letters.

“Everybody is going to get a letter that we believe is operating a short term rental that says one of two things, either you’re in the zone that you can lawfully do this and you need to get a business license or you’re in the zone where you may not do this and you need to cease and desist,” Crouch said. 

Following this, there will be a second reminder and then enforcement will begin — fines of $500 for every day of noncompliance or six months in jail, Crouch said. 

There will be no grace during football period, either, she said. 

The business licensing ordinance passed with Ward 4 Council Member Brett Smith voting against. Ward 3 Council Member Beth Witten said that while she was voting for the ordinance, it did not mean she agreed with the previous short term rental ordinance, that is now law. 

“I think it’s very important that we provide the proper tools and processes, which is the business license process,” she said. 

Now that the business ordinance has passed, those running short-term rentals can apply for business licenses, said Allison Edge, finance director. 

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