27/02/2018
Posted by Jeramie Worley - Today we go to Jefferson City to stand up for the property rights of Short Term Rental owners. There will be a public hearing on HB 2457 and I will speak to oppose the bill. Here is why.
1. The bill offers a window to political subdivisions to ban vacation rentals. How is this bill being advertised as a bill to protect vacation rental owners? Statewide bans are not effective and bad for tourism. This is evident by the 2018 Florida legislature rolling back regulations on vacation rentals because they have seen suppression in property values and tourism where STR are over regulated.
2. The bill includes the language “reasonable regulation” for vacation rentals that “do not have the practical effect of shutting down the business.” At first glance, this seems like good language, however, I do not think this goes far enough. Successful states such as Arizona have passed language that says that if a political subdivision wants to pass a regulation on vacation rentals, it must have a “compelling governmental interest” and the regulation must be “narrowly tailored and have the least restrictive means.” What does that mean for a vacation rental owner? This means that instead of a mandated requirement for a $30,000 retrofitted fire sprinkler system, the owner would, at minimum, be required to disclose to their guests that this system does not exist. A $30,000 sprinkler system is “reasonable” and would not have the “practical effect of shutting down the business” but would (and has) placed an unnecessary burden on STR in our state.
3. The bill changes the state statute and would classify EVERY short term rental in the state as a Hotel/Motel or “lodging establishment.” Regardless of the size or the number of nights rented, any mom or pop from Iowa who bought a vacation home in Missouri and wanted to rent it out to subsidize their income, would now be faced with “running a business” instead of owning a rental property. They could then be subject to increased regulatory burden and even, commercial taxation. This type of classification has already proven to reduce the profitability of this type of investment and could cause these investment dollars to go to another state. STR owners CONSTANTLY IMPROVE their properties, which creates a trickle down benefit for cleaners, service people, retail and appliance stores not to mention the surrounding tourist attractions.
4. The bill imposes mandatory taxes with no representation on any local tourism boards or associations.
5. Bottom Line – This bill was not asked for or wanted by anyone from Branson or Lake of the Ozarks which make up over 80 percent of the STR in Missouri. Neither was STL area or KC consulted. Vacation Rental Owners WERE NOT GIVEN A VOICE in the creation of this bill. This bill is being promoted by a political and corporate agenda rather than a desire to protect the private property rights of Missouri citizens. Rep Keith Frederick is filing a bill this week that will accomplish these things! Stay tuned for more on that.
If you want to help, Join me and contact the Speaker of the House – Todd Richardson and the Chairman of the General Laws Committee Robert Cornejo as well as your local rep and say that you do not support HB 2457 and you would rather support Keith Fredericks efforts to protect tourism and the short term rental industry in Missouri.
Or you can help by joining the Missouri Vacation Home Alliance at
https://www.movacationhomealliance.com
Copyright 2017, Missouri Vacation Home Alliance. All Rights Reserved. Missouri Vacation Home Alliance is a 501(c)6 non-profit organization. 1159 Bee Creek Rd, Branson, MO 65616