Whereas a dwelling unit that meets the definition of a short-term rental within BCs Short-Term Rental Accommodations Act can be rented out, but places additional demands on local government infrastructure, such as water and sewer, and should pay extra tax commensurate with the additional demand; And whereas tourist overnight accommodation uses such as motels, hotels, and resorts are classed and taxed as businesses: Therefore be it resolved that a dwelling unit offered and used for short term rentals be assigned a tax class created specific to that use, or alternatively that a dwelling unit offered and used for short-term rentals be redefined as Class 6: Business and Other; And be it further resolved that the Province continue to explore ways to reduce commodification of housing, in consultation with local governments.
Ministry of Finance BC has more property classes nine than most provinces and is not actively considering creating a new class. There would also be challenges with reclassifying short-term rentals from class 1 to class 6: - Many properties offer a portion of their property as a short-term rental and determining the areas to be classified as class 6 would be a challenge. - Properties that are used as short-term rentals for only part of the year or are vacant for part of the year may need to be split classified based on the time used as a short-term rental, time used by the owner and the time the unit is vacant. - The rules for classifying multi-unit, purpose-built strata buildings used for short-term accommodation are already complicated and need careful review to ensure compliance with any potential policy. The Province is aware of the negative impact short-term rentals can have on the long-term housing supply and agrees that short-term rentals should pay their fair share of tax. The Province has taken steps to mitigate those impacts. In 2018, BC reached an arrangement with Airbnb, allowing the online company to collect provincial sales tax on all short-term rentals conducted through its platform. Effective May 1, 2024, the Province implemented new restrictions on short-term rentals, including Principal Residence Requirement and Business Licence Requirement. These new rules aim to return short-term rental units to the long-term housing market and give local governments stronger tools. Some local governments can request to opt-in or opt-out of the principal residence requirement. As the new short-term rental rules have only been implemented for a year, the Province needs to allow time for these regulations to take full effect and monitor their impacts.