When visitors come to Boulder, they may stay with friends or in a business such as a hotel whose main purpose is housing visitors. A third option, short-term rentals, primarily through Airbnb, VRBO or InvitedHome, is currently illegal but widely available. Last year there were 1,800 Boulder listings with Airbnb. The city wants to tax those rentals at 7.5% and begin regulating them.
The business community claims that short-term rentals (STRs) under 30 days unfairly compete with hotels that have to pay accommodations taxes and are subject to inspections and other regulations. Some owners of short-term rentals claim that they need the option of renting rooms in order to be able to afford to live in Boulder and that the proposed regulations such as requiring a rental license are unduly burdensome.
We can all appreciate the value of tourist dollars for our community, and there are times such as CU graduation when Boulder hotels are full so we probably want more short-term tourist beds available, not fewer. Some CO resort towns such as Breckenridge, Vail and Aspen currently regulate STRs.
There are two ordinances associated with this ballot measure. Ordinance 8065 has the actual ballot language and specifies the STR tax details. If 2N passes, then certain STRs will be allowed. Regulations outlined in Ordinance 8050 include requiring the STR to be the operator’s principal residence, respecting occupancy limits, not allowing STRs in affordable housing units, and limiting the number of days an accessory unit such as a converted garage may be rented. If 2N does not pass, then Ordinance 8050 prohibits all STRs, but STRs will probably continue unless the city makes a serious effort at enforcement which seems unlikely and would no doubt lead to some feelings of ill will.
Boulder’s STRs have been flying under the radar which makes one wonder if the rental income has been reported on individual’s income tax forms. In terms of logistics, Airbnb collects taxes on rentals in some big cities and pays the government directly. Ordinance 8065 specifies that the taxes collected pay for the administration and enforcement expenses of the STR regulatory program. Excess money would go to Boulder’s affordable housing fund.
Recommendation: FOR
Although this is a labeled a tax increase and the entire electorate votes for it, the tax only affects a segment of the population profiting from short-term rentals. It would bring in new money for the city perhaps avoiding a future request for a tax increase from the general populace except that excess revenue from this tax goes to affordable housing and not the city’s more flexible General Fund.
If 2N passes, the City Council can tweak the Boulder Revised Code as needed (except that it may not increase the tax rate without voter approval) to facilitate implementation of legal, short-term rentals. For instance, one argument against 2N is that allowing STRs could change neighborhoods adversely. Some neighborhoods could become like Grand Central Station and lose a long-term, residential sense of community while at the same time property prices go up even faster as house sellers account for potential rental income in the asking price, despite the regulation that the rental license wouldn’t transfer when ownership changes.
Website for the Yes side
http://www.fairdealboulder.com/
Website for the No side
No known website – Info on an opposition website appreciated.
Approved Ballot Language
City of Boulder Ballot Issue 2N
Short-Term Rental Tax
Shall City of Boulder taxes be increased by up to $400,000.00 annually (in the first full fiscal year) and by whatever amounts as may be collected annually thereafter by the imposition of a short-term rental tax on each lease or rental of any dwelling unit, not already taxed as a hotel, motel or other public accommodation in the amount of seven and one-half percent, to fund administration, enforcement and all other reasonable expenses associated with administering the short-term rental program with any additional funds going to create affordable housing from January 1, 2016;
And in connection therewith,
Shall the full proceeds of such taxes at such rates and any earnings thereon be collected, retained, and spent, as a voter-approved revenue change without limitation or condition, and without limiting the collection, retention, or spending of any other revenues or funds by the City of Boulder under Article X Section 20 of the Colorado Constitution or any other law?
- For the measure____
- Against the measure____
Ordinance 8065 to refer 2N to the voters and to add Chapter 15 to Title 3 “Revenue and Taxation” of the Boulder Revised Code
https://documents.bouldercolorado.gov/weblink8/0/doc/130115/Page1.aspx
Ordinance 8050 to amend Title 10 “Structures” of the Boulder Revised Code to include and define short-term rentals
https://documents.bouldercolorado.gov/weblink8/0/doc/130418/Page1.aspx
The business community claims that short-term rentals (STRs) under 30 days unfairly compete with hotels that have to pay accommodations taxes and are subject to inspections and other regulations. Some owners of short-term rentals claim that they need the option of renting rooms in order to be able to afford to live in Boulder and that the proposed regulations such as requiring a rental license are unduly burdensome.
We can all appreciate the value of tourist dollars for our community, and there are times such as CU graduation when Boulder hotels are full so we probably want more short-term tourist beds available, not fewer. Some CO resort towns such as Breckenridge, Vail and Aspen currently regulate STRs.
There are two ordinances associated with this ballot measure. Ordinance 8065 has the actual ballot language and specifies the STR tax details. If 2N passes, then certain STRs will be allowed. Regulations outlined in Ordinance 8050 include requiring the STR to be the operator’s principal residence, respecting occupancy limits, not allowing STRs in affordable housing units, and limiting the number of days an accessory unit such as a converted garage may be rented. If 2N does not pass, then Ordinance 8050 prohibits all STRs, but STRs will probably continue unless the city makes a serious effort at enforcement which seems unlikely and would no doubt lead to some feelings of ill will.
Boulder’s STRs have been flying under the radar which makes one wonder if the rental income has been reported on individual’s income tax forms. In terms of logistics, Airbnb collects taxes on rentals in some big cities and pays the government directly. Ordinance 8065 specifies that the taxes collected pay for the administration and enforcement expenses of the STR regulatory program. Excess money would go to Boulder’s affordable housing fund.
Recommendation: FOR
Although this is a labeled a tax increase and the entire electorate votes for it, the tax only affects a segment of the population profiting from short-term rentals. It would bring in new money for the city perhaps avoiding a future request for a tax increase from the general populace except that excess revenue from this tax goes to affordable housing and not the city’s more flexible General Fund.
If 2N passes, the City Council can tweak the Boulder Revised Code as needed (except that it may not increase the tax rate without voter approval) to facilitate implementation of legal, short-term rentals. For instance, one argument against 2N is that allowing STRs could change neighborhoods adversely. Some neighborhoods could become like Grand Central Station and lose a long-term, residential sense of community while at the same time property prices go up even faster as house sellers account for potential rental income in the asking price, despite the regulation that the rental license wouldn’t transfer when ownership changes.
Website for the Yes side
http://www.fairdealboulder.com/
Website for the No side
No known website – Info on an opposition website appreciated.
Approved Ballot Language
City of Boulder Ballot Issue 2N
Short-Term Rental Tax
Shall City of Boulder taxes be increased by up to $400,000.00 annually (in the first full fiscal year) and by whatever amounts as may be collected annually thereafter by the imposition of a short-term rental tax on each lease or rental of any dwelling unit, not already taxed as a hotel, motel or other public accommodation in the amount of seven and one-half percent, to fund administration, enforcement and all other reasonable expenses associated with administering the short-term rental program with any additional funds going to create affordable housing from January 1, 2016;
And in connection therewith,
Shall the full proceeds of such taxes at such rates and any earnings thereon be collected, retained, and spent, as a voter-approved revenue change without limitation or condition, and without limiting the collection, retention, or spending of any other revenues or funds by the City of Boulder under Article X Section 20 of the Colorado Constitution or any other law?
- For the measure____
- Against the measure____
Ordinance 8065 to refer 2N to the voters and to add Chapter 15 to Title 3 “Revenue and Taxation” of the Boulder Revised Code
https://documents.bouldercolorado.gov/weblink8/0/doc/130115/Page1.aspx
Ordinance 8050 to amend Title 10 “Structures” of the Boulder Revised Code to include and define short-term rentals
https://documents.bouldercolorado.gov/weblink8/0/doc/130418/Page1.aspx
My issue with Boulder approving 2N is that it would greatly benefit Airbnb investors in its expected $25 billion IPO, marginally benefit STR hosts and transient occupants, and greatly diminish a conforming residential property owner’s rights to use and enjoy his or her property in a residential neighborhood. We all purchase residential property expecting our neighbors to abide by the zoning restrictions prohibiting most commercial activities in residential neighborhoods. The renting of a room to transient occupants for compensation is a commercial activity. Airbnb is going across the nation trying to legalize STRs under the guise of "regulation". Airbnb does not invest in properties in our residential neighborhoods, hire employees in our neighborhoods or pay real estate taxes, yet they make $100 millions off of transaction fees by having people essentially operate hotel rooms in the middle of our neighborhoods. One only need to look at the Airbnb fight occurring in San Francisco and that workers in Crested Butte this winter are expected to live in tents with port-a-potties outside of town due to Airbnb STRs that this is a bad idea for Boulder.
ReplyDeleteI agree that short-term rentals are not really beneficial to the residents of a community (besides those renting rooms in their houses), rather they benefit visitors looking for cheaper accommodations. But doesn't this ballot measure simply acknowledge that the phenomenon of short-term rentals is in play and that it should be regulated and taxed? If it's defeated there will still be rentals via AirBnB etc., but there won't be any regulation of them nor benefit via taxes to the City.
ReplyDelete