Bill to set B&B taxes is deferred

A bill establishing a separate property tax category for bed-and-breakfast operations was deferred Monday by the County Council Budget and Finance Committee.

County finance officials have asked the council to create the new tax category so they can address property tax issues and set up a special rate for B&Bs, which will be subject to a new permitting process under a separate bill moving through council.

But advocates for the vacation rental industry have questioned why B&Bs need their own tax rate and can't be taxed like other home-based businesses.

Currently, B&Bs in residential districts are taxed at the improved residential property tax rate.