Airbnb, housing issues get spotlight at UBCM

Cities seek government action to 'level playing field' with existing hotels, avoid loss of long-term rentals to vacation market

Map from tracking service Inside Airbnb shows locations of more than 4

Municipal leaders will next month debate what to do about online accommodation booking services like Airbnb, which are blamed for shifting part of the long-term rental supply to more lucrative vacation rentals while dodging the taxes that existing hotel and B&B operators pay.

Four resolutions will be before the Union of B.C. Municipalities convention in Victoria in September to seek provincial government regulation of short-term rentals to “level the playing field” with conventional operators.

People renting out rooms, suites or entire homes through Airbnb avoid paying a variety of taxes – from higher commercial property tax rates to sales and room taxes – that represent up 25 to 30 per cent of a regular room’s costs, according to one resolution from the Sun Peaks mountain resort municipality.

It demands “taxation fairness” and an equitable competitive environment between all providers and notes local tourism promotion may also be harmed because those marketing campaigns are often funded by a two to three per cent room tax.

The City of Vancouver’s resolution warns the “explosive growth” of online accommodation platforms has created an urgent need “to protect affordable housing stock for long-term residents.”

Vancouver urges the province to collect all applicable sales taxes at point of purchase on daily private room rentals. It notes that provincial regulations already require operators with four or more units to collect and remit PST and hotel room taxes but the government hasn’t yet enforced that against online booking operators.

There are nearly 5,000 Airbnb listings within the City of Vancouver – which city councillors say often consist of homes that have been taken out of the long-term rental supply.

The rental vacancy rate is under one per cent in both Metro Vancouver and the Fraser Valley.

The tracking site Inside Airbnb shows nearly 1,700 listings are in Victoria and the Capital Regional District.

But smaller B.C. municipalities as farflung as Tofino and Nelson have also been grappling with how to respond, sometimes facing resistance from locals who want to keep earning extra money from bookings through Airbnb or VRBO.

The provincial government has been consulting with municipalities and other stakeholders about potential regulation of so-called sharing economy services such as Airbnb, and particularly the ride-hailing app Uber.

Community Minister Peter Fassbender has yet to report his findings or issue recommendations, and an official in his ministry said the consultations are ongoing.

Another housing issue before the UBCM is the use of “renovictions” by landlords to evict tenants on the pretense of major renovations in order to charge much higher rent to a new tenant.

A New Westminster resolution would ask the province to give renters the right of first refusal to return to their old unit at a rent no more than what could have been charged had they stayed.

Langley City wants the province to create two separate residential property tax classes for single family homes and multifamily strata units.

The municipality argues single family houses have risen much faster in assessed value than condos and house owners as a result have ended up shouldering a much greater share of local property taxes. Creating a new multifamily class would let cities charge different and presumably higher rates to condo dwellers to narrow that difference.

Just Posted

Forest fire 1.5 km from Sara Lake listed as out of control

While the fire is classified as out of control, they expect it to be under control imminently.

20th annual OrcaFest takes over Port McNeill

Check out the North Island Gazette’s OrcaFest photo gallery!

Oh Yeah takes a bite out of Woodchuckers at OrcaFest slo-pitch tournament in Port McNeill

Oh Yeah defeated the Woodchuckers 21-10 after seven innings.

Gate House Theatre reopens, kicks off OrcaFest in style

It was an evening of laughter and good times and the perfect launch to the festival weekend.

Port Hardy council creates subscription-based portal for agendas and minutes

It was a “council decision based on presentation by staff during financial planning budget meetings.”

B.C. seizes 1.5M grams contraband tobacco, down from 5.75M grams the year prior

The 2019-2020 seizures were a sharp drop compared to the 2018-2019 year,

B.C. Speaker tight-lipped about aide’s legislature security tour

B.C. Liberals question Alan Mullen’s drive across Canada, U.S.

B.C. sets rules for ride hailing, same minimum fee as taxis

Larger operating areas seen as threat by cab companies

B.C. manhunt suspects left cellphone video before they died: family

Family member says Kam McLeod, Bryer Schmegelsky recorded final wishes

Okanagan bus driver assaulted for asking patron not to smoke

59-year-old in hospital with non-life threatening injuries

Two hiking families team up to extinguish fire in B.C. backcountry

Children and their parents worked for three hours to ensure safety of the popular hiking region

Police seek tips in 2015 death of Island teen Brown

Four years has passed since the body of Penelakut Island woman was discovered

Most Read