I am one of the unwashed masses who lives in Ellsworth. Tried and failed to become one of the MDI brahmin in 2017. Even pre-COVID it was nigh impossible to relocate there-- now, a pipe dream. All I can say is this: dear lord, help us staunch the hemhorraging of housing in Ellsworth. I've called the city planner several times to ask what we're doing to protect community and I get a response of "well, we're working on the five year plan now..."
By the time that's done, Ellsworth will be done for. It's already teetering on the precipice, gazing into the void. I deeply appreciate the attention you call to the housing issues our region faces. It feels like the few that do speak up get crushed by the hoteliers/tourist trap owners.
It upsets me to no end that those who govern around here seem to welcome the tourism machine (at the expense of us) with open arms.
Keep highlighting the bloodbath. Maybe we can move the needle.
There are items in this post that are misleading and in some cases factually incorrect. For example, there is no tax treatment difference between a business owner who owns a hotel and an individual who owns a vacation rental property. This line specifically is not correct.
“Our hotels, motels, inns, and B & B’s are legitimate businesses, licensed as such, and subject to business taxes. This is not the case with VR-1’s."
All vacation rentals in Maine are required to pay lodging sales tax. That includes Hotels, Motels, Inns, etc. and vacation homes that are rented on Airbnb and VRBO. Airbnb and VRBO actually collect and remit the taxes themselves on behalf of the owners. There is no difference between this and that of a hotel. Actually, it is probably more reliable that all taxes are paid from Airbnb than from a small motel that takes cash transactions.
There is no different tax for motels than from a vacation rental home.
I own both a licensed lodging facility and vacation homes. The tax is no different.
Other points about vacation rental owners having to pay a tax due to the resource use - that is the case right now as they pay State lodging taxes. Whether or not the State is allocating enough of the lodging tax income to MDI based on how much it generates, that is a different question. But the vacation rental owners are paying.
Those links are from Airbnb and the state of Maine. They show that the lodging tax rate is the exact same for vacation rentals as it is for motels. There is no difference. And it shows that Airbnb actually collects and remits this on owner's behalf to the state of Maine, which is certainly more accurate and reliable than what motels/hotels/etc. do. I self report and self remit the motel/hotel lodging taxes whereas vacation rentals it is collected directly.
There is no difference in the way either is taxed. The line you have quoted from someone in your article is not factually correct.
There is a difference between state lodging tax and local property tax. True assessment has not caught up with STRs as commercial enterprises yet. Do you live in any of your STRs? Did you evict any year-rounds residents for your rentals? Are they all just seasonals? Thank for writing and sharing your view.
Hi Lincoln. I am not talking about local property tax. Of course there is a difference between those two things - they are entirely different taxes. I am talking specifically about a quote that you have published to your website which is not a factual representation of the tax situation. There is no difference between a motel and a short-term vacation rental house (VR-1 in the case of Bar Harbor and noted in the quote) in terms of what they pay in tax for using the property as a rental and generating revenue. It is exactly the same tax and I have sent you links to the state of Maine website that says this exact thing. Will you be removing that quote from your article or adding a note that says it is not correct?
No, I do not live in the short-term rental houses. No, I did not evict anyone. Some of the properties are open seasonallyand most are open year round.
Perhaps if some sort of additional fee was applied to STRs by the various towns for the additional impacts and burdens created by all the types of lodging, a percentage of that fee collected could be given back to all the property owners who do are not lodging owners. After all, the teacher, lawyer, nurse, landscaper, etc. , living in your neighborhood quietly trying to enjoy their home, and maintaining it so it looks nice for all to enjoy, is making it more appealing for your lodgers with no share in the profits. Yet they put up, often without complaint, because they do not want to offend you. The reality is, additional lodgers bring additional noise and traffic…sometimes, and they are not really neighbors you can enjoy over the years.
My husband , Art Greif were lucky to live for many years on a small street that had escaped lodging sprawl for many years! Thank you dear neighbors!
I am one of the unwashed masses who lives in Ellsworth. Tried and failed to become one of the MDI brahmin in 2017. Even pre-COVID it was nigh impossible to relocate there-- now, a pipe dream. All I can say is this: dear lord, help us staunch the hemhorraging of housing in Ellsworth. I've called the city planner several times to ask what we're doing to protect community and I get a response of "well, we're working on the five year plan now..."
By the time that's done, Ellsworth will be done for. It's already teetering on the precipice, gazing into the void. I deeply appreciate the attention you call to the housing issues our region faces. It feels like the few that do speak up get crushed by the hoteliers/tourist trap owners.
It upsets me to no end that those who govern around here seem to welcome the tourism machine (at the expense of us) with open arms.
Keep highlighting the bloodbath. Maybe we can move the needle.
Nice article!
Once again ask not for whom the bell tolls dear readers, for it tolls for thee!
When is SWH going to implement a bed tax? 20% would be a great amount of tax income to help the town deal with all the issues discussed in the article
There are items in this post that are misleading and in some cases factually incorrect. For example, there is no tax treatment difference between a business owner who owns a hotel and an individual who owns a vacation rental property. This line specifically is not correct.
“Our hotels, motels, inns, and B & B’s are legitimate businesses, licensed as such, and subject to business taxes. This is not the case with VR-1’s."
All vacation rentals in Maine are required to pay lodging sales tax. That includes Hotels, Motels, Inns, etc. and vacation homes that are rented on Airbnb and VRBO. Airbnb and VRBO actually collect and remit the taxes themselves on behalf of the owners. There is no difference between this and that of a hotel. Actually, it is probably more reliable that all taxes are paid from Airbnb than from a small motel that takes cash transactions.
There is no different tax for motels than from a vacation rental home.
I own both a licensed lodging facility and vacation homes. The tax is no different.
Other points about vacation rental owners having to pay a tax due to the resource use - that is the case right now as they pay State lodging taxes. Whether or not the State is allocating enough of the lodging tax income to MDI based on how much it generates, that is a different question. But the vacation rental owners are paying.
I can't find anyone posting what you claimed about tax treatment, but there is a difference on fees,
Those links are from Airbnb and the state of Maine. They show that the lodging tax rate is the exact same for vacation rentals as it is for motels. There is no difference. And it shows that Airbnb actually collects and remits this on owner's behalf to the state of Maine, which is certainly more accurate and reliable than what motels/hotels/etc. do. I self report and self remit the motel/hotel lodging taxes whereas vacation rentals it is collected directly.
There is no difference in the way either is taxed. The line you have quoted from someone in your article is not factually correct.
What is the difference? And what do you mean posting what I claim about tax treatment? That is a copy and paste from your article.
There is a difference between state lodging tax and local property tax. True assessment has not caught up with STRs as commercial enterprises yet. Do you live in any of your STRs? Did you evict any year-rounds residents for your rentals? Are they all just seasonals? Thank for writing and sharing your view.
Hi Lincoln. I am not talking about local property tax. Of course there is a difference between those two things - they are entirely different taxes. I am talking specifically about a quote that you have published to your website which is not a factual representation of the tax situation. There is no difference between a motel and a short-term vacation rental house (VR-1 in the case of Bar Harbor and noted in the quote) in terms of what they pay in tax for using the property as a rental and generating revenue. It is exactly the same tax and I have sent you links to the state of Maine website that says this exact thing. Will you be removing that quote from your article or adding a note that says it is not correct?
No, I do not live in the short-term rental houses. No, I did not evict anyone. Some of the properties are open seasonallyand most are open year round.
https://www.airbnb.com/help/article/2308
https://www.maine.gov/revenue/taxes/sales-use-service-provider-tax/rates-due-dates
https://legislature.maine.gov/lawlibrary/what-is-maines-law-on-vacation-casual-rental-tax/9497
Perhaps if some sort of additional fee was applied to STRs by the various towns for the additional impacts and burdens created by all the types of lodging, a percentage of that fee collected could be given back to all the property owners who do are not lodging owners. After all, the teacher, lawyer, nurse, landscaper, etc. , living in your neighborhood quietly trying to enjoy their home, and maintaining it so it looks nice for all to enjoy, is making it more appealing for your lodgers with no share in the profits. Yet they put up, often without complaint, because they do not want to offend you. The reality is, additional lodgers bring additional noise and traffic…sometimes, and they are not really neighbors you can enjoy over the years.
My husband , Art Greif were lucky to live for many years on a small street that had escaped lodging sprawl for many years! Thank you dear neighbors!
Having a new neighbor every two days means you have a commercial business next door, a commercial business in a residential zone. How is this legal?