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|Bahamian and Expat Rental Homes to Now Pay Hotel License Fees (Tribune)|
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|Page 1 of 1||Total of 10 messages|
|Posted by:||Oct 8th 2009, 03:05:24 pm|
|Richard P||Lawds we can't even agree on what local community projects are important! Local Bahamian puts up a new gbusiness, others tear it down because they don't want to see it or they is jealous.|
|Posted by:||Oct 8th 2009, 08:39:50 am|
|Kif||And, surely the money goes to the big gov't so wouldn't be realized for local community needs and projects?|
|Posted by:||Oct 6th 2009, 10:41:39 pm|
The TourismToday article sets it out pretty nicely, and yes this does seem to have been approved.
|Posted by:||Oct 6th 2009, 10:35:20 pm|
|Tuck Shop||Thanks rich for the help there :||
|Posted by:||Oct 6th 2009, 10:26:25 pm|
|Kimberly||This would work out the same as the hotels, six percent tax of the overall rental charged, for every night that a house/hotel room is rented.|
|Posted by:||Oct 6th 2009, 10:21:47 pm|
|Richard P||seems pretty straightforward ta me ... you own a calculator?|
|Posted by:||Oct 6th 2009, 08:37:51 pm|
|Tuck Shop||so for all us math dunces what does this mean???
Example A: Home appraised at 500,000.00 rental income of 50,000. per year.
Example B: Home appraised at 1,000,000.00 rental income of 75,000.00 per year
Example C: Home appraised at 2,000,000.00 rental income of 150,000.00
anybody a math wiz??? want to take a crack at how new property tax rate/business license/Hotel tax of 6% will play out in a real sense?
Also has this passed? does it have support to pass? whenwill it be enacted?.....
|Posted by:||Oct 6th 2009, 06:59:21 pm|
|Fig Tree News Team||More specifically:
|Posted by:||Oct 6th 2009, 06:36:26 pm|
|Fig Tree News Team||Complete details online, at www.tourismtoday.com/prelim/oorh|
|Posted by:||Oct 6th 2009, 05:22:44 pm|
|Fig Tree News Team||Tuesday, October 06, 2009
By CHESTER ROBARDS
THE RECENTLY-announced amendments to the Hotels Act, which will levy taxes on vacation home rentals, may not have been fully thought through by the Government, an Abaco real estate agent said yesterday.
HG Christie real estate appraiser and agent, Dwayne Wallace, said there were many unanswered questions with regard to the amendments, which will impose hotel license fees, a guest tax and real property taxes on persons wishing to offer their homes as a vacation rental property.
These proeprties, which number as many as 700 to 800 in Abaco, according to Mr Wallace, will now be considered hotels and will demand applicable hotel fees.
The new amendment will require the owners of these homes to register them with the Ministry of Finance, and obtain a hotel license for occupation as such.
Mr Wallace said this new process has muddled the vacation home rental industry in the Bahamas, as new processes will require owners to endure much more red tape before the Government intervened in the sector.
"As I understand it, the Government has amended the Hotel Act so that basically a home can be considered a hotel, which has confused and muddled the whole situation because it requires you to get a business license and pay a business tax," he said.
According to Mr Wallace, however, private homes are prohibited from getting a business license if operating in a residentially zoned area.
He said this and many other questions raised by the amendments to the Act have left the industry baffled.
Many insist the new taxes will cause an increase in rental home prices to offset the new taxes, and it is thought the process of obtaining and maintaining licenses and fees will dissuade future vacation home rental owners from entering the market
Mr Wallace said he was also not convinced that the Government will be able to monitor what amounts to thousands of vacation home rentals across the wider Bahamas.
He said many existing hotels fail to pay hotel guest taxes, amounting to an almost unenforceable tariff.
Mr Wallace added that the amendments could create jobs, as taxes and fees will have to be collected, but the negatives seem to outweigh the positives at the moment.
According to the Act, a hotel was previously defined as "a building or group of buildings sharing common ancillary facilities where there are more than four bedrooms or ten or more beds."
Under the amended act:"Owner-Occupied Rental Homes are now excluded from the requirement to have more than four bedrooms or 10 or more beds in the definition. Therefore, all owner-occupied rental homes are now considered hotels and therefore the applicable taxes and licensing requirements apply."
Vacation home rental owner, Angela Cleare, recently told Tribune Business that the Government might need to monitor these properties for quality assurance when it imposes these taxes.
However, she contends that the Internet already does a good job at weeding out properties who do not keep up standards.
"There is a real risk that they will take advantage of the visitor; that some will provide sub-standard accommodations and tarnish the reputation of the Bahamas without fear of retribution," said Ms Cleare. "The Internet provides a great marketing opportunity, but it also serves to spread the word instantaneously about both bad and good accommodations."
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