Rep. Lehman (800-382-9841) introduced HB 1133 which prohibits local control of rentals for a term less than 30 days. Specifically, a local unit of government is not allowed to prohibit short term rentals (defined as residential for less than 30 days) or regulate them except for certain specified regulations that are permitted.
My guess is that this is meant to stop local regulation of Airbnb, VRBO type rentals. I don’t particularly like the state pre-empting the locals without some pressing need. So, I’m curious what the pressing need might be in this situation. Also, I wonder how this would affect application of innkeeper’s taxes. The tax is authorized by state law but is enacted by local government. Where such taxes are authorized, they are imposed on lodgings for less than 30 days. By its own terms, HB 1133 does not account for imposition of such taxes. I would anticipate that a court would find that a statute in IC 6-9 authorizing such taxes overrides the prohibition on regulation imposed by HB 1133. But, because it’s not explicit, there is no guarantee.
I am a simple person and not versed in the legal aspects but if I understand correctly it could keep us from having a patchwork of different rules and regulations in every locality across the state.
In Carmel Mayor Brainard has already raised the issue of changing the designation from Residential to Rental for the purpose of property taxes. While some form of cost recovery by the Locality is reasonable either as a property tax or a nightly lodging tax other than safety issues this seems another good place for the Government to stand down for the immediate future.Observe it and let it expand. Let’s deal with it after we can establish some best practices as a State to promote the good and restrict the bad.
It is like the stranglehold the state maintains on gaming machines. Why exclude thousands of small businesses from participating in that business? Does it make tax collection easier or is it something more insidious like lobbying and campaign contributions? It certainly keeps a lot of small businesses from realizing their potential.
Seems like for a small investment a person might make a modest income by turning their home into an Airbnb. This would seem to threaten the vested interests that have already secured their operating rights and are the current government preferred vendors.
Casinos, Hotels and Taxi companies have consolidated into large interests that charge higher rates for less service. Regulations that stifle these big business literally suck the air from the small operators and make them non-competitive.
Seems in all of these areas it would make sense to tax, regulate safety and manage it based on actual issues that occur not perceived threats to the status quo.
We need to encourage innovation not just in technology, manufacturing and agriculture but also in the entrepreneurial arenas.
Anyone renting for less than 30 days must collect the inn keepers tax. Has always been required. Owner must register with the state and obtain a tax ID number, collect and remit state tax.