City Council Regular Agenda Addendum Summary


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  UNFINISHED BUSINESS   10.1.       
Meeting Date: 05/23/2018  
Brief Title:    Clarification of Taxes Paid on Property Rentals/VRBO's
Presented by: Linda Watson Prepared by: Linda Watson
Action: Other

RECOMMENDED ACTION:
No action. Just information to clarify questions/concerns from prior meeting.
BACKGROUND:
At the last Council meeting held on May 9, 2018, there was discussion pertaining to the VHR's and the issue of whether vacation home rental owners were paying their taxes.  The City of Page is receiving tax from vacation home rentals, but we receive it in various reporting categories. This becomes a bit confusing when trying to prepare our monthly reports because the category dollars received are based on how the taxpayer reports their taxes in the PG 044 and PG 144 tax codes.  Some taxpayers report under the "Accommodations" tax group, while others report under the "Service", "Retail", "Real Estate, Rental & Leasing" tax group. In February 2018, we added an additional sheet to the Monthly Sales Tax Report to help identify these separate groups.     

Per the Arizona Department of Revenue (ADOR), if the vacation home rental landlord uses an Online Lodging Marketplace (OLM), and the OLM is registered with ADOR, then the taxes are being collected and paid by the OLM.  If the OLM is NOT registered with ADOR, and the landlord has not received documentation that the OLM is remitting the taxes on their behalf, then it is the landlord's responsibility to file and pay the taxes on the gross income received from their rental.

Although we cannot say that all taxpayers are reporting properly, the revenue numbers overall for the Hotel/Motel categories are higher than initially discussed at the last meeting. The City of Page does have a working relationship with the State of Arizona to improve compliance with businesses that are currently not reporting appropriately. 

Our Finance office is open Monday through Thursday 7:00 am to 5:30 pm to assist in any tax related questions that you may have.
 
ALTERNATIVES CONSIDERED:
N/A
ADVISORY BOARD / COMMISSION ACTION:
N/A

Fiscal Impact
Fiscal Year: 2018
Amount Requested: .00
Line Item(s): None
BUDGET IMPACT:
N/A
Attachments
ADOR-TPT Tax Info


    

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