On Monday, the Seattle City gave the thumbs up to a new tax on rentals that are short-term, this is the first step the city would be taking towards putting in order hosts who put their properties on sites like VRBO and Airbnb on rent.
The reviewed legislation will tax operators of short-term rentals who put out their properties on rent for at least $14 for a night spent and other hosts and owners who set their vacant space for rent, be it a spare bedroom or guest room, at 8 dollars per night. This is slightly different from what was original, that is a charge of $10 for a night spent, flat tax that was in September proposed.
Mike O’Brien, a council member, stated that he has an expectation that the tax will haul in an approximate figure of seven million dollars every year but that expected figure could possibly change as other details are considered and modified. The tax action is among the regulations and set of mandates that are crafted to hinder owners of properties from using Airbnb and other platforms for short-term rentals as though they were hotels. This endeavor is part of the extended efforts to guarantee enough supply of long-term stock of rental services for the permanent residents of the city. It was voted by the Council on Monday to isolate the tax from the other established regulations in order to more expeditiously pass it.
Revenue matters and Regulations linked together
Regardless of leading the legislation as its chairman in charge of Planning, Zoning Committee, and Land Use, Rob Johnson, a council member was of the hope that the voting will be delayed on the tax pending the full preparedness of the Council to make a decision, by voting on the whole package. His argument was that the regulation and pieces of the revenue are linked together inextricably.