Vacation Rental Controversy in Cape Cod

Vacation Rental Controversy in Cape Cod

In Massachusetts the summer vacation rentals is a tradition and offer worry free relaxation as there have never been taxes imposed upon vacation renters who stay in cottages, holiday homes, or condos. There has recently been a proposal introduced by Cape Cod lawmakers to impose taxes on these vacationers, causing waves throughout the town. The legislation that has been passed states that on rentals of 90 days or less, it is the prerogative of the owner to charge a taxation fee on private rentals.

Vacation homes and hotel owners, bed and breakfast owners and other small companies have agreed that this will be fair with the large market of people coming to stay over peak seasons. The real estate industry on the other hand, is strongly opposed to the tax, as they feel it would jeopardize the rental industry and is impossible to enforce. It is also felt that the economy of the town will be compromised, as the extra money in the budget that vacationers could spend on whale watching, eating out or on curios, will be kept for the tax instead.

Those who are for the taxation say that it is not a new idea and many other towns are doing it already such as New Hampshire and Maine. The taxation that is charged can be handled just as the other taxes on a vacation rental would be, dismissing the enforcement issue. Administrators also argued that with the extra taxes, they can maintain the town’s tourist attractions and local infrastructure which will help business anyway.

Hotels and bed and breakfasts are also worried about the option portion which is being suggested to be made higher by Gov. Deval Patrick. This will make the overall lodging tax 10.7 percent which is concerning some locals. They feel that if the price is adjusted slightly it will help everyone, so that bigger companies and smaller businesses can benefit. A local realtor, Jim Crocker did suggest that the renters where already paying their fair share of taxes, because they shop at local supermarkets, stores, and support the local businesses without putting any pressure on the schools. He said that the taxation scheme was short sighted.

The battle still continues with many brokers and large tax, paying resorts and hotels happy with the decision, and the local tourism industry, real estate agents, and vacation rental property owners opposed to the legislation.

• Vacation Rental Controversy in Cape Cod  Monday, September 24, 2007
  In Massachusetts the summer vacation rentals is a tradition and offer worry free relaxation as there have never been taxes imposed upon vacation renters who stay in cottages, holiday homes, or condos. There has recently been a proposal introduced by Cape Cod lawmakers to impose taxes on these vacationers, causing waves throughout the town. The legislation that has been passed states that on rentals of 90 days or less, it is the prerogative of the owner to charge a taxation fee on private rentals. Vacation homes and hotel owners, bed and breakfast owners and other small companies have agreed that this will be fair with the large market of people coming to stay over peak seasons...
  
  
• Apartment Rentals in Manhattan Real Estate Report  Friday, September 14, 2007
  Rentals in Manhattan in large demand in August. The end of summer means that many families look for new rental homes or require apartments...Some of the two-bedroom rentals, doorman apartments, and the one bedroom non-doorman apartments have seen a reduction in price despite the other major increases...
  
  
• Things to know when offer your home for rent by owner  Monday, September 03, 2007
  The New York Times recently published an article about the summer rentals. When you decide to earn some money over the summer by renting your house as a “vacation rental by owner” you are bound to face problems from time to time. The tenants that take up the place are there for enjoying and they know that they don’t have to stay for long, thus one could only wish for an ideal tenant in your vacation home.