Cape Town regulators crack down on short-term rental taxes
Summary
Cape Town is cracking down on short-term rental tax loopholes, aiming to tax commercial STRs at the commercial rate instead of residential. The proposal won't affect hosts renting out rooms. Estimates show 30,000 STRs exist, with 26,000 on Airbnb. Stakeholder engagement and a national registry are in development.
Key Insights
- •Industry estimates suggest there are approximately 30,000 short-term rentals in the city, with 26,000 of those listed on Airbnb.
- •The City of Cape Town is proposing a by-law to close a tax loophole, requiring properties used primarily as commercial short-term rentals to pay municipal rates at a commercial tariff rather than a lower residential rate.
Action Items
- ✓Short-term rental owners and operators should come forward to voluntarily pay the correct commercial rates before the law is implemented.Effort: lowImpact: medium
Common Mistakes
- ⚠Failing to comply with the new tax regulations could lead to paying incorrect rates which could lead to penalties.
More from Regulations & Compliance
Carson City, Nevada, is refining its short-term rental regulations. City supervisors are currently reviewing and modifying the local ordinance during a retreat. This review aims to address operational aspects, potentially impacting local hosts through new or revised rules, emphasizing compliance.
A 21-unit vacation rental in Dunedin, Florida, has been approved, signaling potential growth in the local short-term rental market. This approval could lead to increased accommodation options for tourists visiting the area. This news could also influence local regulations.
St. Louis aldermen have approved a short-term rental fee, though a legal battle over existing rules continues. This indicates a focus on regulating the STR market within the city. Hosts in St. Louis should be aware of these new fees, which may impact their profitability. Find out how this affects your STR business.
Curated by Learn STR by GoStudioM