Issue Alert: 13% Tax on Private Home Rentals Bad for RI Property Owners
“Article 24 of Governor Chafee’s budget would place a new burden on homeowners by requiring them to collect taxes totaling 13 percent on short-term rentals of homes, cottages and condominiums.
The tax would apply to any home or cottage owner who receives income for renting his/her property for a total of 15 days or more per calendar year, a common occurrence in tourist areas like South County and Newport. The taxes would apply to the first 30 days of each person’s stay. Homeowners, who are already required to pay federal and state income tax on revenue that they earn from renting their property, would be responsible for collecting the new tax.
Neither Connecticut nor Massachusetts charge hotel or sales taxes on individual homes and condominiums. If passed, this legislation would hurt RI property owners already crippled by the economy by putting RI vacation destinations at a competitive disadvantage to neighboring states. Less business will mean more distressed properties on the market!!!
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