Special Advisor to the Deputy Secretary for Taxation at Pennsylvania Department of Revenue
This is solid reporting on a reasonable debate. What is the right amount of government regulation and taxation for short term rental (STR) properties and their owners? There are a # of factors to consider, and many are noted in this article: 1. The neighbors and neighborhood matters. 2. The availability of short-term stay locations in regions trying to boost their tourist economies matters. 3. Affordable and safe housing for local citizens matter. 4. Guest/visitor comfort and safety matter. 5. Local funding and input for state law/direction matter. 6. The government red tape faced by the local owners of properties matters. States and local governments are wrestling to achieve the right balance, especially in consideration of the availability of STRs with overnight stay locations at traditional hotels and motels. Not all jurisdictions are coming out at the same point on taxation and what level of regulation is needed. The debate and engagement on the issue, though not always perfect, is a sign of healthy democracy at work to respond to a still new way of doing business sparked by emerging technology and economic development. #ShortTermRental #STR #SaLT #StateTaxation #Tourism #Housing
Kevin Wilson
4mo
Short term rental of homes and/or transient occupancy for "rooms" in terms of taxation in Virginia has been an issue of how to define one from the other. Under Indvidual ownership of a single-family property renting an entire home do in fact have property rights that may not be extended to a business operated for the sole purpose of transient "room" rentals. Property owners have been renting their second homes for decades and business entities have found ways to offer that service in a broader sense with the advent of the internet. In Virginia we need to take a closer look of the definitions of Transient Occupancy as Short-Term Rental refers to the rental of personal property. At the same time, we need to protect the property rights of the neighbors of said rentals while protecting the rights of those desiring to rent as they have always done in the past without question. Taxation, well let's establish what's a business in terms of home rental first.
Administrator, Northern Virginia Cigarette Tax Board
4moA lot more work is needed on this. Local control is very important. The registry and a fee is just the tip of the iceberg. These rentals should be liable for and be required to pay the local transient occupancy tax to the jurisdiction where the rental is located. Furthermore, operators need to be more transparent with local tax offices and provide an itemized list of all the rentals in jurisdictions so that local tax offices can adequately perform their discovery and TOT enforcement duties.