Transient Accommodation Taxation
The stated purpose of Act 326 (2012) is to foster consumer protection in the State’s transient accommodations market and ensure greater compliance with applicable state and county laws by operators of transient accommodations in the State. The act does so by requiring the operator of a transient accommodation to designate a local contact residing on the same island where the transient accommodation is located. The act also requires that all advertisements and solicitations on websites for transient accommodations display registration identification numbers. Unfortunately, the act also requires community, condominium, and other similar associations to provide relevant information to the department of taxation about all owners who may be leasing their property as a transient accommodation, “to help ensure compliance with appropriate state and county tax laws.” The legislature decided that requiring community, condominium, and other similar associations to provide that information to the department of taxation will permit additional enforcement of relevant state and county tax laws. However, effective January 1, 2016, associations will no longer be required to provide this information to the department of taxation.