Entries Tagged 'Air BNB' ↓

CVB & Hoteliers talk ‘BID TAX’ on Air BNB

I guess the CVB had a luncheon (today?) and a little birdy told me the discussion quickly went to how Air BNB is hurting the hotel industry in Sioux Falls and maybe it is time to start charging them a Bid Tax.

Gee. I wonder whose idea that was? Probably some idiot blogger.

The operators of Air BNB already have skirted paying other lodging taxes (they pay sales taxes) and avoid the same health inspections Hotels, Motels and Bed & Breakfasts have to endure.

Maybe it was just idle bitching, but I have never known the leader of the CVB to remain idle to long.

Is it time Air BNB operators in Sioux Falls start paying a BID tax?

The hotels in Sioux Falls of a certain size have to pay into the BID tax. If you are long term rentals you have to pay taxes. If you are an Air BNB operator you just pay sales taxes;

AirBnB owners must register their property with City Hall as a rental.

Renting out a private residence as a bed and breakfast in Sioux Falls comes with other requirements, including applying for a $250 conditional use permit, making the necessary accommodations for off-street parking, registering with the state health department and filing a site plan of their home with officials.

In 2015, city officials raised a red flag when they found about 30 AirBnBs operating as rentals while breaking the law.

Last year, the San Francisco-based tech company agreed to collect sales tax from South Dakota renters.

But as we are seeing, it is becoming a very lucrative business for those operating it in Sioux Falls. And who can blame them? You make much more money from short term renters AND they are pre-vetted before they stay. In fact Sioux Falls city councilor Erickson and her Realtor husband have continued to expand their Air BNB business since it has been introduced in Sioux Falls.

What do you think? Should there be a separate BID tax for short term renters since they really are NOT supplying housing like long-term renters and are acting more like a hotel.