Quote:
Originally Posted by joey2665
Seems to be a fair resolution. This is very similar to short term rentals is Florida. The landlord is charged a short term rental tax that is passed along to the tenant.
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NH already has the Meals and Rentals Tax of 9%. So this would be more similar to Key West where you pay the state tax and the local tax.
The huge difference is a renter just needs to go to another town the lake to avoid the Laconia Tax. Remember this is a town that already has property taxes out of control so owners are already passing on what the market will bare of those property Taxes.
Just so we all understand what a renter pays now in fees (I can tell you first hand the market is having a hard time bearing it).
A HomeAway/VRBO fee to the home owner, is $500 per year, plus fees on every rental that vary.
The renter pays, up to $499 in home away fees plus 9% NH rentals tax, plus most places have a cleaning fee, possible other fees.
The total fees being charged to an owner and renter on a property that is ~$4500+ rental (pretty typical for a week on the lake) is an extra $1000 being shared between the owner and renter.
The result is many homeowners have has to reduce pricing slightly. Now, let us add another local tax, why would anyone rent in Laconia when they can go one town over and avoid that fee.
The result will be a potential property buyer will weight this in their decision-making process even if they don't plan to rent but like the option. They will either pay less for the property in Laconia or just elsewhere.
This applies to the entire city.
Sorry for my terrible grammer.