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Don't true BnB and hotels pay occupancy tax on top of property taxes they already pay? Aren't the property taxes that hotels and true BnB pay more than primary residences?
Yes the hotels pay more in business taxes. But to be fair, some hotels receive tax credits and other kinds of government largess that the homeowner doesn't receive. So is it really an even playing field?
And yes, I'm in favor of imposing occupancy taxes on the homeowners who rent a space more than 72 days a year. Their intent is to run a kind of hotel business so they should be treated as such. For the owner-occupied homes that rent for less than 72 days, I think it is unfair.
This is basically just another case of an incumbent industry flexing it's muscle. Air BnB capitulated on this issue because it is easier for them to simply pass the fees along to the tourists. Anyone who believes our tax code is severely weighted on the backs of small business owners and individuals should care about the principal of the matter. The fact that we all too often go along with this kind of arrangement is the problem.
"Some hotels" may receive tax credits, but it's rare. Such instances are generally for places that are trying to lure a hotel to help revitalize an area or for a hotel that is renovating a historic structure. Both of those examples are a good use of tax credits (or "government largesse," as you call it) to my mind. Here in Columbia, there are several hotels under construction, undergoing expansion, or recently completed downtown, none of which received government help to be built.
The mortgage interest tax deduction is a huge benefit to homeowners and one of the largest tax expenditures in the tax code. Although there are certainly instances where business interests use their clout at the expense of the little guy, I don't think this is a good example of it.
Does Air BnB issue 1099's so the income is reported? If you rent out under Air BnB can you deduct your rental expenses? Lots of questions to be answered before any new taxes are issued.
Am I missing something? Why on earth would you NOT expect to declare and pay taxes on rental income?
Valid point.
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