New Tax Could Increase Summer Rental Cost For 2019
There is a new tax that could be put into affect which will dramatically increase the cost of rentals by 11.625% for the Summer of 2019.
The new legislation is making it mandatory for online agencies such as Airbnb, Homeaway.com and Booking.com to pay the same taxes and fees as hotels and motels.
Currently, hotels and motels are already paying taxes and fees, "for 'transient accommodations' also known as hotel and occupancy fees as well as various municipal taxes." However, these online booking agencies have yet to be included and businesses consider this an unfair advantage.
Joanne Slater who currently owns a vacation rental in Ocean City explains that if this law passes through, it could cost an additional $709 for rentals during the prime time Summer season. And let's be serious, a cost increase that large will result in vacation goers to look elsewhere.
Joanne also mentions that a lot of her renters visit yearly and will make their reservations for the following year at the end of their rental. This means that prices have already established which means Mrs. Slater will be responsible for the added cost.
However, this law has yet to be passed and there is hope that this law will be swept off the table because this "unfair advantage" is already spelled out within the law.
“The following are not considered transient accommodations: furnished or unfurnished private residential properties, including but not limited to condominiums, bungalows, single-family homes, and similar living units, where no maid service... or other common hotel services are made available by the lessor, and the rental transaction is executed by a real estate broker.”
There are at least two other Facebook groups and a new website circulating that are looking to get rid of this new tax law.
Let me ask you this: do you agree with them?
Take a look at the original article at PressOfAtlanticCity.com.
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