HomeMy WebLinkAbouthotel residences2003_201401211454509478ADVISORY COMMITTEE OF NONVOTING TAXPAYERS
TOWN & COUNTY BUILDING
NANTUCKET MA 02554
September 6, 2008
Board of Selectmen
Town & County Building
Nantucket MA 02554
With welcomed guidance this summer from various members of your Board
and Town Administration, we have given further consideration to possible
alternative sources of funding for the Town. The potential of a tax on
seasonal vacation rentals is evident from the Room Occupancy Tax paid by
island guest houses and hotels.
We have heard concern about political obstacles in seeking revenue from
short-term private home rentals. Our question here is whether deriving Town
revenue from hotel residence time shares and rentals is possible without
political obstacles.
In the current (September 4, 2008) issue of the Inquirer & Mirror starting on
the front page is an article about new high-end hotel residences, “New trend
in luxury living sprouting up downtown.” These would not be offered as
usual room rentals by the hotel ownership. Instead, each lodging unit would
be separately owned by investors retaining occupancy rights for the entire
year or fractions of a year, i.e., time-shares. Unit investors would be able to
rent out their units for short stays using a reservation service operated by
management (which would likely also provide unit housekeeping services).
We trust that the Room Occupancy Tax will be payable on such rentals and
on the equivalent of rents received by the hotels from respective buyers.
Since such hotel residences are “transient residential facilities” allowed only
in a specific commercial zoning district, exempting them from the Room
Occupancy Tax as though an ordinary private residence would seem
unreasonable.
If we could be useful in any further investigation of this, kindly let us know.
Respectfully,
Advisory Committee of Nonvoting Taxpayers
Howard Blitman, Chair
Cc: Town Manager Libby Gibson