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Potential Vacation Home Tax!! |
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 City staff at an Administration and Finance Subcommittee’s special meeting this past week, staff members suggested the city begin taxing short-term rentals of private homes. This could start as early as July 1st and would add an estimated $200,000 to the cities budget.
The 12% tax on rental price would be instituted on all rentals of private homes rented for 30 days or less. Basically a property owner will have to pay $120 per $1000 in collected rent. They will also have to file a one-time registration fee of $25 per property.
The Malibu Municipal Code allows for such a tax but has never had a need to enforce it. They currently impose this law on the hotels and motels in the area.
The big issue is HOW the city will be able to enforce this law. They will have to work through the various real estate agencies (shouldn’t be too hard to find one around here) in order to determine whether or not a home is considered a “vacation rental” or not.
Currently they are over 400 leases available in Malibu, more than half of them on the beach. One can only imagine what kind of profit the city is going to be making off all this “potential” taxable revenue.
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