TOT and VRBLT Administrative and Audit Services

The County of San Mateo is soliciting a Request for Proposals (RFP) from qualified firms to provide countywide administrative services for Transient Occupancy Tax (TOT), Short-Term Rental (STR) programs, and Vehicle Rental Business License Tax (VRBLT). The County seeks a comprehensive solution that includes billing, collection, compliance monitoring, and auditing services in accordance with the County’s Transient Occupancy Tax (TOT) Ordinance Chapter 5.136 and Vehicle Rental Business License Tax (VRBLT) Ordinance Chapter 5.150 , and applicable state laws and regulations. The target start date and term for the proposed services is July 1, 2026 through June 30, 2029, with the option to extend for up to 2 years, subject to negotiation of a final agreement.

San Mateo County is the 14th largest county in California, with a population of approximately 725,000. The Treasurer-Tax Collector is responsible for administering and enforcing the collection of Transient Occupancy Tax (TOT) and Vehicle Rental Business License Tax (VRBLT) from businesses operating in the unincorporated areas of the County.

TOT and VRBLT, currently levied at rates of 10% and 2.5% respectively, are important sources of non-property tax revenue for the County. TOT is imposed on transients who occupy lodging facilities—including hotels, motels, campgrounds, short-term rentals (STRs), and vacation homes—for 30 consecutive calendar days or less. Operators subject to these taxes are required to register with the County, obtain the appropriate certificates, and report and remit taxes on a quarterly basis. In San Mateo County, vehicle rental businesses operating in unincorporated areas are required to obtain a Vehicle Rental Business License and remit a business license tax equal to 2.5% of gross rental receipts, reported to the County Tax Collector.

The Treasurer-Tax Collector is seeking a qualified and reliable partner to provide comprehensive TOT, STR and VRBLT collection services. These services include billing and collecting, compliance and monitoring, customer support for TOT, STR and VRBLT operators, administrative and audit assistance as described in Section 2 (Scope of Work), and expertise in reviewing municipal codes and advising on legislative or regulatory changes impacting revenue collection.

The selected solution should enhance operational efficiency, reduce administrative costs, and improve compliance with County ordinances. The Treasurer-Tax Collector requires a firm with a proven track record and demonstrated capacity to accurately and timely identify TOT, STR, and VRBLT operators that are out of compliance.

In recent years, the growth of short-term rental platforms such as Airbnb and VRBO has significantly expanded STR activity within the unincorporated areas of San Mateo County. As a result, the County seeks partners capable of leveraging data and analytics to identify potential non-compliant STR operators. Accurate data collection, reporting, and analysis are critical to ensuring effective revenue administration and compliance enforcement.

To ensure fairness and transparency, all questions regarding this RFP must be submitted in writing. Responses will be posted through OpenGov for review by all prospective respondents.

All proposals will be evaluated by an RFP evaluation committee. The Treasurer-Tax Collector reserves the right to reject any or all proposals received and to reject any proposal deemed incomplete.

Except as otherwise provided in the applicable Additional Terms, nothing in the Master Agreement shall preclude the provider from offering, or the County from obtaining, similar products or services from other entities.

Unless otherwise stated, all deadlines referenced in this RFP are based on Pacific Standard Time.