RENTAL SECTOR ‘BEING TARGETED BY GOVT’

By LYNAIRE MUNNINGS

PROPERTY owners are disgruntled with the Davis administration’s plans to increase tax earnings from the vacation rental sector, claiming they are being targeted by the government.

The Davis administration is pushing for thousands of vacation rental owners to register their properties with the Department of Inland Revenue (DIR).

The tax authority, in a statement last week, said the initiative was designed to ensure vacation rental properties pay their fair taxation share while also maintaining a high service standard for their guests. Owners are being required to register their properties by April 30, via a newly-launched online portal. To incentivise registration compliance, the government is dangling a variety of financial benefits such as a total exemption from 2023 business licence

$15,000 fees. Registration is being billed as free, and the initiative is also offering “free” promotion and the possibility to access financing via agencies such as the Small Business Development Centre (SBDC).

Tanya Rahming, a vacation rental owner in Treasure Cay, Abaco, questioned why the government wanted vacation rental owners to register their properties, claiming that foreigners who are registered as second homeowners are “raping the system”.

“I’m tired of everything when locals become aware of things and we get into things all of a sudden it’s regulated and then the (foreigners) find another way to do the system,” she told this newspaper yesterday.

Ms Rahming also suggested that the government give the same “concessions” to the vacation rental sector that hotels receive. While adamant that she will remain in the industry, she, however, is expecting a “break” from the government.

Selena Sweeting, a vacation rental owner in eastern New Providence, questioned the government’s intentions, while noting the lack of attention placed on the “incentive side of businesses”.

While sceptical about the implementation of the portal, Ms Sweeting is urging the government to provide reprieve for business persons who pay taxes.

“At the end of the day, there was some talk about some kind of reprieve for business persons paying taxes, but I’m not seeing that,” she said yesterday.

“I mean, maybe I’m not high enough in the business bracket line, but you know, it just seems like everything is being taken from you and there isn’t a whole lot of effort I think or attention being placed on the incentive side of businesses.”

Since joining the industry in 2018, Ms Sweeting said that she turned her focus