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> those taxes are factors into accommodation prices Citation needed. Accommodation pricing is typically set by supply and demand. Which is why, last minute hot

> those taxes are factors into accommodation prices Citation needed. Accommodation pricing is typically set by supply and demand. Which is why, last minute hotel deals at steep discounts are a thing. > Tourists pay real property taxes Then states/counties should be recovering delinquent property taxes from them

eppp 7y ago
There is no citation needed. Property taxes are one of the base costs in determining the revenue needed for keeping the accommodation provider open. It then follows that that cost must be paid by the customers if the establishment is to be profitable. If the business is being operated at a loss on purpose then this doesn't apply. The tourists in aggregate are therefore paying the property taxes of the establishment.
- writepub 7y ago
  > It then follows that that cost must be paid by the customers .. It absolutely does not follow at all. When costs are disconnected from pricing, the business undergoes a loss. For instance, many rural Texas cities have high property taxes, and low demand for hotel rooms. In many of these places hotels are unviable, because the market would never pay enough to eke out a profit. In such places, Airbnb is surprisingly effective, as the renter typically sees AirBnB income as a bonus, and doesn't rely on it to make a living.
dragonwriter 7y ago
> Accommodation pricing is typically set by supply and demand. Obviously, but taxes directly effect supply (supply is not the quantity of units available, it's the function mapping price to the quantity of units people are willing to provide at that price; likewise with demand with “pay for” in place of “provide”; taxes directly paid by the party providing a good or service as a consequence of providing it shift upward the price at which they are willing to provide any given number of units of the good or service.)

eppp 7y ago

There is no citation needed. Property taxes are one of the base costs in determining the revenue needed for keeping the accommodation provider open. It then follows that that cost must be paid by the customers if the establishment is to be profitable. If the business is being operated at a loss on purpose then this doesn't apply. The tourists in aggregate are therefore paying the property taxes of the establishment.

writepub 7y ago
> It then follows that that cost must be paid by the customers .. It absolutely does not follow at all. When costs are disconnected from pricing, the business undergoes a loss. For instance, many rural Texas cities have high property taxes, and low demand for hotel rooms. In many of these places hotels are unviable, because the market would never pay enough to eke out a profit. In such places, Airbnb is surprisingly effective, as the renter typically sees AirBnB income as a bonus, and doesn't rely on it to make a living.

dragonwriter 7y ago

> Accommodation pricing is typically set by supply and demand. Obviously, but taxes directly effect supply (supply is not the quantity of units available, it's the function mapping price to the quantity of units people are willing to provide at that price; likewise with demand with “pay for” in place of “provide”; taxes directly paid by the party providing a good or service as a consequence of providing it shift upward the price at which they are willing to provide any given number of units of the good or service.)