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I don't think so. The VRBO market has existed for years (decades even) AirBnB just made it marketable and easy to enter. The controversy with them is some of t
by yardie 14y ago
I don't think so. The VRBO market has existed for years (decades even) AirBnB just made it marketable and easy to enter. The controversy with them is some of the property owners are really taking the piss and treating their residential property as hotels and not paying the hotel taxes (BTW, Florida is 20%).
All the reports I've read have been spot on (though the AirBnB founders disagree). The hotels are paying this tax. Some of your members properties look awfully like a hotel. You collect the money, you collect the tax.
Unlike the taxi companies who actually have a monopoly, the hoteliers just want the same deal to apply to everyone.
- Zak 14y agoIt might be reasonable in this case to ask why the hotels have to pay a special tax. Why shouldn't they just collect sales tax like every other business?
- rprasad 14y agoBecause renting out a hotel room is not a sale. Ergo, a sales tax does not apply. An occupancy tax is the tax levied on short-term leases (i.e.,, hotels).
- ajays 14y agoIt's mainly because (a) sales taxes are much less than these occupancy taxes, and (b) socking it to the visitor has no political repercussions; they're not going to vote in the elections anyways.
- Zak 14y agoThere's sales tax on renting a car most places - why not a room? Why should there be a different tax at a different rate for renting a room?
- yardie 14y agoBecause visitors don't pay taxes or elect politicians. So when the cities need to balance their budget and vote on a new revenue stream guess where it's coming from? Property and sales tax increases are widely unpopular so politicians look for revenue that won't impact their career: cigarettes, liquor, gambling, and hotels.