As a new member here, if this is not appropriate content for this site, please let me know. I was prompted to write the following after a recent gondola ride up Mount Mansfield with a fellow Vermonter who I learned rents out just one room in his cabin. (I had just listened to the VPR Podcast mentioned above.) He felt he was exempt from all the rules, because he "didn't make a lot of money doing it." Well, rather than getting into a heated debate, I let it slide. But it made me angry enough to spend a couple of hours writing this. It's going on my website, FB, LinkedIn, and anywhere else I can find an appropriate spot. If you feel as I do, you are welcome to copy, paste, modify, share, forward, comment, etc.
Here goes:
Thanks, Airbnb!
As the owner of Hobble Inn, a small bed and breakfast in Stowe, Vermont, I was thrilled to see that Airbnb is now collecting and submitting rooms and meals taxes to the State of Vermont on behalf of hosts and their guests.
My hope is that similar business models will follow suit. This action starts to level the playing field for those of us running our B&Bs as a bonafide business and are playing by the rules. It is also an important step in assuring the health and safety of our collective guests.
My B&B website clearly states, "Hobble Inn is proud to be fully licensed, inspected, registered, and insured." It is very costly to be able to make that claim.
Let's begin with permits and licensing. A permit was first required from the town of Stowe. Next, an inspection by the State Fire Marshall was required. I had to have commercial-grade smoke and carbon monoxide detectors installed in each sleeping room (4), as well as the dining room, the basement, and the upstairs hall. These replacements all need to connect to a central monitored alarm system, which when tested can easily be heard from four blocks away. The cost of this system was several thousand dollars.
Another license is required for any establishment providing lodging, and a separate food license is needed for establishments that use a stove. (Continental breakfast service is currently exempt.) Both licenses require initial – then annual – inspections to assure the places are clean and safe for guests. Hobble Inn is at the lowest occupancy rate, so I pay $130 and $105 respectively, annually, having passed both inspections with the highest score.
And, naturally, my homeowner's insurance changed to "commercial" and skyrocketed due to the increased risk potential. All of these required expenses are some of the cost of doing business in the Bed and Breakfast world.
So, you can see why I’m so pleased with the State’s announcement regarding Airbnb.
Vermont should see increased revenue from that channel alone, estimated at $1 million a year. With any luck, this new revenue source will prompt an investigation, then action, to more aggressively encourage non-compliant establishments to become "legal", and to collect the rooms and meals taxes on revenue derived from Booking.com, Expedia, TripAdvisor, Travelocity, Homeaway, VRBO, and many more channels in this growing sharing economy.
It’s only fair.
If asked, I would enthusiastically agree to join a task force to explore the options, the potential, the process, the cost, and the ramifications of this course of action. Some of that new million dollar windfall should be dedicated to this project.
For those interested in the current Vermont meals and rooms tax information, visit http://tax.vermont.gov/business-and-corp/meals-and-rooms-tax/faqs.
