Article on an FB Forum

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gillumhouse's picture
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This was posted on a WV Forum today https://wvexplorer.com/2018/12/26/west-virginia-airbnbs-earned-10-million-in-2018/?fbclid=IwAR3gof4Hik4CBCqlggwOp9JEtWWgO0wEzH5gLTsCjOrvjH4448zfNeBTQIg and I commented about how much taxes and fees the State was losing on all that revenue.  After an exchange with a woman about taxes and the need to register as a business, one man said that was money directly into the local economy. Another said that the State would just waste the money and then went on to say I hasd nothing to fear from AIR, that people would stay at AIR one night and then move on to stay with me.

I gave the man an earful in a nice way explaining that homeowners does not cover commercial, the difference in residential and commercial real estate taxes, the regulations, the amenities real B & Bs are expected to have, the cost of all those private bathrooms a real B & B is expected to have, etc. He came back and thanked me for educating him about the hospitality industry.

Later in the day, I had a call from the editor of the publication thanking me for the response I had posted. Had a nice chat. It may even turn into some publicity. Hope springs eternal.

Silverspoon's picture
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Our state just passed a short term rental law that affects anyone renting for more than 14 days a year.  The law includes a state registry, requirement of $1,000,000 liability insurance  and levies a state lodging tax of 5%.  Towns can add 6%, specific zones have additional specific tax for convention center, wastewater fund etc.  So looking like about 14% will be added around these parts with even higher amounts in some urban areas.  No changes at all effecting us.

Oh the wailing on local forums for vacation rental owners! It will be interesting to see if this affects the inquiries we receive for the summer season.  

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Curious if you know where to find the data on all the other states?

gillumhouse's picture
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Northern Dreamer wrote:

Curious if you know where to find the data on all the other states?

No, I do not. This was from an interview with a publication in WV. The editor/publisher called ME after I had posted a reply to the FB post about AIR. I am trying to educate people about what it is REALLY about. there have been articles around the country with AIR citing how much money THRY hve pumped into the economy of a State - although as we all know, it really is not all going into the economy of that State.

Morticia's picture
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Around here, none of the money from air rentals is going into the local economy. It is all going directly to the town to pay property taxes. Just ask anyone who is renting rooms.

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Morticia wrote:

Around here, none of the money from air rentals is going into the local economy. It is all going directly to the town to pay property taxes. Just ask anyone who is renting rooms.


Around here most of the Air owners are out of town/state investors who paid as little as possible for their properties, did renovations as quickly and cheaply as possible then listed on Air to make the quick buck.  They have little interest in what their property does to the neighborhood, just the quick buck they can stash in their pockets before the tax assessor comes around to increase their property assessment with all the renovations.  Once the #'s don't work they will sell at a grand profit and move on to another.  (watched a beginners video on the subject, yeah they are even selling sessions on how to become a Air made millionaire)
 

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Copperhead wrote:

Around here most of the Air owners are out of town/state investors who paid as little as possible for their properties, did renovations as quickly and cheaply as possible then listed on Air to make the quick buck.  They have little interest in what their property does to the neighborhood, just the quick buck they can stash in their pockets before the tax assessor comes around to increase their property assessment with all the renovations.  Once the #'s don't work they will sell at a grand profit and move on to another.

It's the exact same here. We tried to buy an adjacent property to ours to add rooms, but one of these "Air Moguls" swooped in, paid cash and plugged a couple of leaky pipes and immediately listed it. It's a plague. 

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Morticia's picture
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Spoke with son last night. His neighbor wants to sell her air properties. She's asking $850,000. Same neighborhood son lives in where his house was $125,000.

gillumhouse's picture
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The editor liked my comments and that is what I told him. I am not afraid of AIR, if they are paying the expenses I am as they should, we are even.

 

Arks's picture
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Of course they don't want to pay taxes and fees to the state. Nobody does. And of course they'll come up with all kinds of reasons to not pay, reasons that sound logical to them because it supports their side.

But it's about fairness. It's not fair for some to pay and others not. If there must be taxes, and their must, everybody should share the burden.

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All saints can do miracles, but few of them can keep hotel. ~ Mark Twain

 

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