Whereas the Prescribed Classes of Property Regulation enables BC Assessment to split-classify two specific Short Term Overnight Commercial Accommodation Properties strata accommodation properties and bed and breakfast residential properties between Class 1 and Class 6 to reflect the dual residential and commercial use of these properties; And whereas the regulation does not capture residential properties that are also used commercially for short-term overnight accommodation known as short term rentals or vacation rentals, creating a tax fairness issue: Therefore be it resolved that the Province amend legislation so that all residential properties used for short-term overnight accommodation be eligible to be split-classified between Class 1 and Class 6, and that classification methodology for short-term rentals be developed in consultation with stakeholders.
Ministry of Municipal Affairs Housing The Province understands that the issue of new types of accommodation businesses such as short term rental STR has property tax revenue and equity implications for local governments and particularly for some small resort municipalities. There are also unintended consequences from STRs including the loss of affordable long-term rental housing. Local governments can regulate STRs through zoning requirements, bylaws, permitting e.g., requiring business licences and inspection. The current split classification methodology for strata accommodation properties SAPs was introduced in 2007 after significant consultations. These properties are located primarily in resort municipalities and have multiple ownership structures. The classification methodology is based on the actual use of the property for residential or commercial rental purposes. The Province is moving forward with legislative and regulatory changes to allow Airbnb to collect provincial sales taxes, helping to fund housing affordability for British Columbians.