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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 fol
by 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.