Huntsville’s short-term rental accommodation (STRA) licensing program has become self-sustaining, noted Huntsville Chief Building Official Christopher Nagy at a General Committee meeting on March 1.
At that meeting, Nagy gave councillors an overview of the program for 2022. In his report, Nagy noted that there were 201 licensed short-term rentals in Huntsville and 54 applications were under review. Of the 201 registered STRs, many of which are advertised on sites like Airbnb and Vrbo, 174 were remitting the Municipal Accommodation Tax (Mat) totalling $274,571 (unaudited) dollars, and staff are working on getting the remainder to remit.
“Finance Staff are continuing to work with property owners to ensure all properties are up to date on their reporting and remitting. It should be noted that there are tools through our AMP (Administrative Monetary Penalty) program to encourage compliance should an owner choose not to remit,” according to Nagy’s report.
The report also noted an expected program surplus of about $171,683 (unaudited) at the end of 2022, which will be transferred to the STR Program Reserve. “This will bring the total reserve to approximately $364,769.”
Staff are also working on getting the STRA application up on the Cloudpermit software. It is expected to be up and running sometime during the first quarter of 2023. “Through the Cloudpermit licensing application, staff have set up reminders for license holders and staff for each quarter that the tax needs to be remitted. This information will be reviewed and verified by STRA staff prior to the renewal of any existing applications,” added Nagy.
His report also noted that staff plan to follow up again in March with non-complying property owners and any remaining properties that have not complied will be sent a $1,500 fine. After that, “should there be properties that remain non-compliant staff will begin Part 3 (Provincial Court) enforcement.”
Nagy also noted that staff will continue to educate the public on the program and attend events such as lake association meetings.
The municipality has also created a short-term rental accommodation map of Huntsville, which includes a list of active properties along with the property managers’ contact information. “This has significantly decreased the number of phone calls received and is utilized by the real estate industry as well as the public,” added Nagy.
You can find more information about the program and the short-term rental accommodation map, here.
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We are taxing a type of business that is essentially illegal, based on residential zoning. STR’s generally should be considered a “commercial” operation., especially when operated by third party web sites and yet they exist all over in “evidentially zoned” areas.
Municipalities ignored their own zoning rules for years on this issue.
Now they have a tax grab that catches (depending whom you listen to) maybe half the rentals.
This does not change the fact that if there are enough short term rentals it degrades the social aspects of the society since short term renters do not often, if at all, take part in most community events.
They cherry pick their time of year, come for a few days or maybe weeks and then leave. They may leave some cash behind but they do not really contribute to the local society and in addition, they suck up a lot of the housing needed for local residents (I’m told)
It is a grey area. Nobody really disagrees with someone renting part of their home to supplement their income if they are not using that portion of their home. Like maybe the kids grew up and left and the parents have some spare rooms, for example.
Where I see a problem is when the system is institutionalized into an large (and it is large!) on line business run by third party platforms. These platforms completely change the dynamics of the situation, some are a bit benign in returning $$ to the area but some others just suck the cash out of the area, use the resources, plug up the area with people who have no vested interest in the well being of the community and essentially take all the theoretical gains directly out of the community. Sometimes these funds don’t even stay in Canada and vanish overseas. Collection of taxes is questionable and this STA tax appears to be questionable too. Like I said, it depends whom you talk to but a high percentage seem not to think STA’s are a good thing.
Maybe more re-thinking is needed here.
Congratulations on becoming a self sustained tax grab. Would you not get the same financial result if this STR department didn’t exist? It seems odd to me to create a division in the local government that requires personnel, infrastructure, fines, and enforcement that must be paid for by the very business you are scrutinizing. You’ve reached that illusive goal, perpetual motion. The cost would be the same if all of this specific bureaucracy disappeared and there was no oversight. I understand that the city is in need of funds. But the STR’s in the area help bring in and sustain this tourist influx of money. Those individuals that come up with these new taxes are obviously very creative people. Why not spend this imaginative effort on something that doesn’t cost the local homeowners money out of their meager bottom line. Come on….
I agree with Paul. I too question the equity of program. I have small rustic two bedroom cottage th registered with STR great for families. I am told can only advertise for 4 (2/bedroom).
Yet property on our lake with two or three beds / bunks per room can advertise sleeps 6/room. and have 18 on property. I have bunks and big bedroom but only allowed 2?
Where is equity?
Plus town is not handling noise party complaints well. How many complaints required before licence revoked?
This evening, I counted 195 STRs on Airbnb; 127 on VRBO and Deerhurst’s Lakeside Lodge has over 110 private condos operating as STRs. (I counted only those within the town’s boundaries). There are obviously more than the listed 432 STRs when summer comes.
It is quite clear that the town has mismanaged the STR folio. As most towns/cities are banning third party STRs as they damage affordability, Huntsville can’t even count the STRs it has.
With less than 50% of the town’s STRs openly operating and advertising, and yet not remitting the required tax what is the point. The STR licensing programme is neither fair to the STR operators who are playing by the rules nor to the citizens of Huntsville who expect these businesses to be regulated