Discrimination, inconsistency

As an Airbnb host in Kelowna, when guests book my spare bedroom for a short stay, they pay the room rate, an eight per cent tax to the province and a three per cent Municipal and Regional District Tax (MRDT).

Airbnb is the only platform that collects the taxes and remits them directly to the province and the city.

The City of Kelowna has directed the MRDT tax to the Housing Opportunities Reserve Fund (HORS) to build more affordable housing. I recall our newest councillor commenting about how good the idea was of taking the money and putting it to more affordable housing.

I concur. There’s only one problem. The city is discriminating against a group of short-term rental hosts and at the same time making it more difficult for these properties to fill the HORS coffers. How are they discriminating? Current bed and breakfast businesses, which are by definition, short-term rentals, pay $27.50 for a business license. The city is proposing to charge another group which offers short-term rentals, $345 or $750 for a business license. That’s between 12 and 28 times more than an existing short-term rental group. That’s discrimination.

One of our choices is to stop offering our hosting services. The problem for the city is, without us, there is no three per cent of our income to fill the Housing Opportunities Reserve Fund. I can’t imagine the City wants that to happen.

I believe the mayor and council members do not want to discriminate against one group which offers short-term rentals by charging them 12-28 times more for a business license. They recognize it is not appropriate. It’s not just. It’s not fair. It’s not equitable. And it’s not right.

Mayor and councillors, you have the power and authority make the short-term rental license fee non-discriminatory, just, fair, equitable, and in line with what the City is already charging for licenses for regular bed and breakfasts. I respectfully urge you to do so.