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ShortTerm. Home Rentals study - November 30, 2616 STAKEHOLDER MEETING RESULTS In order to get an in-depth perspective on different sides of this Issue, city staff held a stakeholder engagement session on October 10, 261.6. Stakeholders in attendance included"owners of traditional B&Bs, people who currently operate STHRs out of their homes, Planning Commissioners, and other stakeholders representing neighborhood groups. Questions At the meeting, stakeholders raised as many questions as comments. This high level of inquiry indicates that it is beneficial that the city has decided to study this. issue and is cons[dering a range of ordinance options. Comments 1) Many stakeholders were.concerned with. the mechanics of having sorne tylae'of lodging tax or fee system for STHRs. aj A lodging tax Would be in the range of 3%(or less) added to the receipt and charged directly to the guest/customer: • Sometimes the webs ites will coordinate the lodging talc or they will allow the host to add it to their fees through the STHR websites • The City of Stillwater wo.uId need to consider how this tax is collected fro m.hosts or the STHR websites bj Concerns that establishing a lodging tax would make the County Assessor re -categorize properties from. residential to commercial, thereby impacting the owner's property taxes. Avoiding this rec[assification was very important to the meeting. participants. 0 Questions of income taxes were also brought up; • Hosts that rent out their property for 14 collective days or less annually do not have to pay income taxes.on the income they make from the rents[ • 1.5 days or more of rental needs to be reported on income taxes d) There may be some distinction needed between homestead (owner -occupied) STHRs and. non -homestead (vacation home) STHRs. 2) Stakeholders als.o.brought.up.concerm over the potential cost burden it would.put on the City of Stillwater to establish regulations.and.then to enforce them. 3) Participantssa[so indicated that more lodging options are needed in the city.