In an interview that was included in Saturday’s Summit Daily News, realtor Sara Gambino stated, “An investment property is essentially a business, because you’re generating income off of using your investment.” “They’ve been looking at the angles of short-term rentals for years,” Gambino said, “and it is essentially a business, but then it’s not treated like a business.” 

I agree completely that short-term rentals should be treated as income-generating “businesses.” It follows logically that:

First, they should only be located in commercial resort areas and not residential neighborhoods.

Second, they should pay commercial property taxes as a “business” at 29%.  Not at the far more favorable residential rate.

By allowing this, the state provides an enormous tax advantage to short-term rentals in relation to commercial hotels and motels.

What’s sauce for the goose is sauce for the gander. Or should short-term rentals continue to receive preferential tax treatment? This amounts to a taxpayer subsidy to an income generating “business.”