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The Village considers applying lodging tax to short-term rentals; staff cites modest revenue estimate
Summary
Council discussed extending the lodging tax to short-term rentals under 30 days; staff estimated a sample yield of about $31,000 annually from roughly 15 properties at a 9.25% rate, and members asked about the 30-day threshold and registration/enforcement issues.
Staff introduced consideration of a lodging tax that would include short-term residential rentals of less than 30 days. Staff said the tax already applies to conventional lodging and that adding short-term rentals could broaden the base.
Using a sample calculation staff provided (15 properties occupied 180 days per year at an average daily rate of $125 and a tax rate of 9.25%), staff estimated roughly $31,000 in annual tax revenue. Council members asked whether stays longer than 30 days would be excluded, how listings are registered and how the state tax commission would collect and remit the tax to the city.
Council asked staff whether adding the tax would reduce the city's enforcement burden; staff said registered properties are tracked and that collection by the tax commission could ease municipal administration. No formal motion or vote on the lodging-tax change was recorded in the transcript.
