Everywhere I've ever lived had higher property taxes on homes which were not your primary residence. At the very least people are paying those increased rates.

Everywhere I've ever lived had higher property taxes on homes which were not your primary residence. At the very least people are paying those increased rates. If a person isn't reporting their income, that's a federal crime, and we have enforcement mechanisms for that. They might be lagging a bit, but if there's anything the government is fairly good at, it's making sure you're paying income tax. In what way is a bonafide Bed and Breakfast going to result in additional documented employment? All of the bonafide BnBs I've stayed at were completely run and maintained by the home owners.