The (VT) Tax Man Cometh!

[ski diva]

Anyone here have a share in a ski house in VT? If so, will this affect your plans for next year?

The Vermont Department of Taxes has sent thousands of dollars in tax bills to ski-share-house renters, a move that could cause a "devastating" blow to the Killington economy, according to former Killington Chamber of Commerce President Chris Karr.

The department's compliance division began issuing notices to homeowners and lessees of private ski shares in Killington in late April, asking that they register with the state as a business so they will be billed the state's 9 percent meals and rooms tax.

A typical ski share house arrangement consists of someone leasing a property from the property owner, then collecting rent from people who want to pay for a specific amount of time. In most cases, rooms are rented for weeks at a time, and in others weekends only.

According to the state, the meals and rooms tax doesn't apply to long-term renting or leasing relationships, but short-term renting does.

Some ski-share lessees were asked to submit financial information and the date they began renting, while others received bills ranging from $6,000 to $32,000, according to lessees.

The tax department says the practice is nothing new.

Lessees said they were shocked by the retroactive tax bills and will consider not renting out a home on the mountain again.

According to state tax law, a "hotel is any establishment which holds itself out to the public by offering sleeping accommodations for a consideration" offered by a property owner, lessee, sub lessee or any other agent.

Inns, motels, ski lodges, cabins and rooming homes all fall under the law.

For the past decade, the state has scoured Web sites, print advertisements and federal tax filings for any "short-term rentals of vacation homes" that are not registered with the state and therefore not billed the mandated 9 percent meals and rooms tax, according to Brenda Vovakes, director of compliance for the tax department.

The bills are not exclusive to Killington and the department is not targeting any one area, according to Vovakes.

For the rest of the article, go here.

 

[mollmeister]

That's just ************************.

One reason people rent houses is so that they won't have to pay all the hotel extras (taxes, service fees, etc.). Like the travel industry needs any more challenges these days.

Boo!

 

[snowski/swimmouse]

That stinks (major understatement). Vermont taxes are already quite high from this skimouse's point of view!!!

 

[OuiSkiToo]

We've received a tax bill -- 1st time in 18 years, even though they say they've been collecting this from ski houses for years. There are still a lot of houses that haven't received anything.

This is what a couple of them have found out: If you rent a bed for over 30 days, you're not supposed to be subject to the tax. Full shares in our house have their bed for 6 months - and access to it whenever they want (even though midweek days might accrue extra utility charges).

I know of several houses in the process of fighting it now, and several others that have pulled their share ads and might not even do a house next year.

It's just ridiculous!