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A bill that would impose Baltimore's 9.5% hotel tax on short-term rentals could generate up to $ 1 million a year for the city, according to a new analysis tax.
The Baltimore City Council's Tax, Financial and Economic Council The Development Committee will hold a hearing Thursday on the bill, which – in addition to applying the hotel tax to Airbnb-style sites – limit the ability of people to rent their properties.
The Bureau of Budget and Management Tuesday a letter to council that the bill would have a "direct and positive impact" on Baltimore's finances. But analysts have recommended that the council amend the bill and eliminate two of its most controversial aspects.
The bureau wrote that the city would get a lot more tax revenue if the council removed the proposed restrictions on the number of rental properties that a host could have. and eliminated a provision that would only allow people to rent space for 60 days a year if it is not their permanent residence.
Removal of Both Restrictions Could Generate Between $ 1.6 Million and $ 2.2 Million in Additional Revenue A Baltimore Coalition Airbnb hosts also pleaded for these changes, arguing that a 60-day cap and property limits threaten to put them out of business.
Councilman Eric Costello, the bil The main sponsor of the I, said that it is "flexible on the ceiling of the days" and ready to hear the views of other people and organizations on d & # 39; Other amendments.
"It takes a good balance to avoid making the neighborhoods excessively ephemeral", he said.
Airbnb was quickly developed in the Baltimore area.In April 2018, the city had about 1 260 active hosts and 2,105 active rental units The Ministry of Finance's analysis included only 1,478 active dwellings, as the proposed law would limit the number of properties per host to two.
term would generate between $ 587,000 and $ 1 million annually in hotel tax revenues, if the law remained unchanged, with at least 40% of the proceeds going to Visit Baltimore, the city's tourism branch.
Airbnb and other hosting platforms have turned into a thriving industry, allowing people to rent their guest rooms, or even entire properties, in the long run. houses in the sole purpose of renting them on these sites. But their popularity has been a problem for hotels and bed and breakfasts, which claim that homeowners have an unfair advantage by circumventing regulations.
The law proposed by the city would also introduce licensing requirements for short-term rentals. City officials could revoke a license if the host does not comply with the city's building, fire, health and zoning rules. Costello said that it is vital that the city creates a "quick and decisive mechanism" for uprooting a problematic property license.
A host would pay a fee of $ 100 for each license and would be limited to obtaining a license for two properties, including the permanent residence of the host. Airbnb spokesman, Crystal Davis, agreed that online rentals should be regulated, but felt that the city's proposal was beneficial for established hotels. An Airbnb representative plans to 39, attend the hearing on Thursday
Rachel Indek, of the Baltimore Hosts Coalition, said that she and many other hosts have no problem with the new requirements of license or the imposition of the hotel tax. It's the limit of nights and properties, she says, that would really upset her industry.
"We are businesses," she said. "I can not stay vacant for 305 days a year, nobody tells Starbucks that they can only operate 60 days a year." Treat us like companies, license us, but let us operate freely "
The coalition expects that a hundred of its members will present themselves at Thursday's hearing." Indek, who owns five properties in the city and manages a handful others, is said to be encouraged by the Finance Department's amendment recommendations
"This is the best news I've heard all day", did it? she says. [email protected]
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