This newsletter mostly discusses governmental actions to limit (or permit) the number or frequency of short term rentals through regulations (and the enforcement of those regulations).
But taxation of those STRs is another important component of the rules that governing bodies put in place.
Investors in STRs – and the lenders to those investors – have to consider the tax burden on an STR before underwriting the project. Increased taxes mean higher prices passed on to guests, lowering the relative attractiveness of the STR versus hotels, B&Bs and other options for consumers.
In the news this week were great examples of the battle over STR taxation that are occurring at both the state and local levels:
- In Colorado, a plan that would have “quadrupled” taxes levied on short term rentals died in a late-night committee vote. Vociferous opposition from Airbnb and STR owners helped defeat the plan. This was the third time in recent years that such an effort failed.
- In Michigan, an increased taxation plan of 6% on STRs has just been introduced into the legislature. This tax would be on top of the 6% already charged as a lodging tax.
- Sometimes, it’s not new rules, but just enforcement of the rules, that drives tax revenue for governments. Such is the case in Santa Barbara, CA, where $595,000 of revenue was collected from just 40 illegally operating STRs. This was a strong ROI for the government, as the special project to enforce the rules spent only “$100,000 of its allotted $1.175 million.” Now, they’ll turn to the >1,000 illegal STRs still remaining to continue collecting revenue.
Below, please find Property Guard's weekly short term rental regulation round-up, highlighting state and local news regarding short term rental regulations to regulate (or prohibit) Airbnbs and other STRs. If you want a comprehensive data solution on STR regulations in all 20,000 state and local jurisdictions, contact us here.
New and Proposed Regulations:
- Michigan: Law adding 6% tax on short term rentals is considered in state legislature (link)
- San Marcos, TX: “San Marcos backtracks on short-term rental limits in some neighborhoods” (link)
- Centerville, OH: New law allows STRs in the neighborhood of Uptown, but sunsets them in the rest of the city (link)
- Narragansett, RI: New law limiting number of short term rental permits passes first hurdle, second vote still required (link)
- Tybee Island, GA: Ordinance moves forward significantly reducing the number of STRs in the community (link)
- Waysville, NC: Planning board beginning to craft new STR rules (link)
- Pinellas County, FL: “Pinellas leaders weigh short-term rental changes” (link)
- San Angelo, TX: Planning commission and city council to vote on amendments to STR rules (link)
- Juneau, AK: “Task force to study additional short-term rental regulations favored by Juneau Assembly members” (link)
- Crawford, NY: Town continues to assess how to best address STRs (link)
Other Noteworthy News:
- McCall, Idaho Lawsuit: Homeowners sue city over law that restricts short term rentals (link)
- Miami Embraces STRs: “Luxury Airbnb High-Rises Are Reshaping Miami’s Skyline” (link)
- Santa Barbara Cracks Down: A special enforcement of Santa Barbara’s STR rules has netted the city $595,000 (link)
