Property tax relief unfair for short-term rentals
The article on March 26 titled “COVID-19 funding, tax cuts in mayor’s budget” contains several inequities. The article states that “one of the primary changes geared toward resident relief during the coronavirus crisis includes decreasing property tax rates.”
The proposed rates and lowering of rates do not address all categories that affect residents, like residents who own short-term rentals. The short-term rental category has not been lowered and if you happen to own a short-term rental over $900,000 assessment, you are subject to a tiered rate increase.
When the council was discussing tiered rates, it was said they wanted a tiered system in place, but they could keep the same initial rate for tier(s) in a category.
They are also working with higher appraised values for the 2021 fiscal year which will net millions collected.
I am a resident and owner of short-term rentals and I’m not getting property tax relief. These short-term rentals are my retirement income.
We, hotels/resorts and legal short-term rentals have to maintain our fixed monthly expenses (i.e. property taxes, maintenance fees, insurance, utilities, etc.). The noticeable difference on the proposed tax rates schedule is that the proposed tax rate for hotel and resort has been decreased from $11.00 to $9.37 or a decrease of $1.63 per thousand and absent of any tiers.
The Budget Committee needs to decrease the short-term rental property tax rate equivalent to the percentage (14.8 percent) decrease given to the hotel and resort category. This is the only fair thing to do.