Regulated

Council ok’s law on lodgings in home sharing sites

THE 18th Davao city council approved on third and final reading yesterday an ordinance regulating establishments enlisted in home sharing applications by requiring them to follow the amended code, to get necessary permits and to pay proper taxes to the city government of Davao.

This ordinance is an amendment to the existing Tourism Code.

The ordinance proposed by Davao City Councilor Al Ryan Alejandre was passed to ensure the establishments enlisted in home sharing applications will follow the minimum standards set by the Amended tourism code on accommodation establishments as well as the regulations on business establishments by the city.

Section 4 of the ordinance states that establishments enlisted in home sharing applications are hereby categorized as self-styled accommodation establishments, which is a primary tourism enterprise under the Amended Tourism Code.

As such, it is hereby mandatorily required upon establishments enlisted in home sharing applications to strictly comply with the Amended Tourism Code by following the basic minimum requirements of self-styled accommodation establishments, the mandatory submission of Occupancy reports and other requirements set forth by the code with regard primary tourism enterprises.

Being engaged in the business of tourism enterprises, the establishments enlisted in home sharing applications must first secure a certificate of registration from the City Tourism Operations Office and a mayor's permit to operate from the Office of the City mayor. Such application for registration and mayor's permit shall be processed in accordance with the procedures provided in the Revenue Code and in the Amended Tourism Code. As such, they shall likewise pay the appropriate taxes to the city government.

Section 5 mandates that non-compliance of any establishments enlisted in home sharing applications of the provisions of the ordinance and who shall cause another enterprise or entity to violate the ordinance shall, upon conviction by a competent court, suffer penalty of imprisonment of not less than six months or a fine of five thousand pesos or both, at the discretion of the court.

The ordinance shall take effect 15 days after its publication in a local functional newspaper of general circulation.