Whereas a dwelling unit that is used as a commercial enterprise for short term rentals and does not serve as the primary residence for the owner, a manager or other person; And whereas tourist overnight accommodation uses such as motels, hotels, and resorts are classed and taxed as businesses: Therefore be it resolved that a dwelling unit, typically a detached dwelling, offered and used as a whole for short term rentals be assigned the appropriate tax class and be redefined as Class 6: Business and Other; And be it further resolved that where the property is offered, be it only seasonally, as a whole rather than as a Bed Breakfast with a permanent resident this be in respect of the property as a whole rather than be limited to a portion or a split assessment between Class 1 and 6.
Ministry of Municipal Affairs and Housing The Province has taken steps to ensure owners and operators of STRs are paying their fair share of sales taxes by negotiating a deal with Airbnb in February 2018. The tax impact of split classification would be tempered by the application of the Tourist Accommodation Assessment Relief Act up to 50 percent exemption for Class 6 portion. Some other jurisdictions American cities are taxing some STRs at a commercial rate. Ministry staff are monitoring this trend. Local governments can regulate STRs through zoning requirements, bylaws, permitting e.g., requiring business licences and inspection. The Province and UBCM have established a working group on STRs and look forward to engaging with UBCM about how best to address concerns regarding the impacts of STRs on local governments across BC. Including, examining the impact of STRs have on affordable rental housing.