Nightly Rental Unit Taxation And Regulation Discussed

Bobbie Bicknell Coray, Reporter.  Rich Civic Times 

Nightly rental units have been have been regulated in the cities but not in the county unincorporated areas.  Kim Wilson, Rich County Treasurer, said that if a private residence is being used as a nightly rental it ceases to be considered a residence but is considered a business.  That means that the interior furnishing are taxable property and the residence has to be taxed as a business. The residence must be used for the exclusive use of the owner or the interior furnishing are considered business property.  Anything under $10,000 in value is not taxed, but some of the furnishings and amenities of the rental units are very expensive.  Owners must self- proclaim the value of all personal property and that value is used.  Audits are performed by the state tax commission. 

The property must be disclosed on a tax form which asks for the initial cost of furnishings or such items as a Jacuzzi.  There is a depreciation schedule.   Bill Cox, Rich County Commissioner, said that Garden City has been very proactive in tracking nightly rentals and licensing them as businesses which confirm to the fire code and other safety codes.  Melinda Hislop, Bear Lake Convention and Visitor’s Bureau, is tracking rentals for transient room tax.  

Wilson will check other counties' ordinances.  Cox said, "we don't want people building in the county to escape regulation.  We need to have fire inspections just as Garden City has.  There are over 200 rental properties, we need to be consistent and we need safety controls.  If we allow people to rent and their property doesn't meet fire codes and we don't have ordinances to enforce the codes, then the county is liable if there is death or injury in the case of fire if they are considered a business and we have licensed them."  Mitch Poulsen, Bear Lake Regional Commission, is looking into this also. There is less liability to the county if there are ordinances in place.