Wednesday, April 25, 2012

"Rentals Tax" Proposal Passes Town Meeting

Above, a Wellfleet beach in summer, full of summer visitors. Readers requested that I write about the proposal for a “rentals tax” article on the Town Warrant, so here's a summary ...

Yesterday evening, Selectman Paul Pilcher explained Article 20 would give the town the authority to impose a tax if approved by the legislature. The tax would be from 1 to 5%. The renter would assume this tax, not the person renting. He said that last year 5000 beach stickers were sold for one or two week stays in peak season. Eastham, Brewster, and Provincetown have already submitted similar requests to the legislature. The town needs a new source of revenue. Taxing summer visitors seems to make sense since they use services provided by the town. The tax percentage would be decided at a future Town Meeting. There ensued a long discussion. I will simply supply a brief summary of the varying points-of-view …

Selectwoman Berta Bruinooge reported having done some research. "Rental income is a significant business,” she declared. Online, there were 236 rentals listed in Wellfleet the week she looked. Three were over $8000 per week. Twenty-two cost between $5000 and $8000. 84 cost between $2500 and $4999. 111 cost between $1000 and $2499. There were only sixteen under $1000.

Ben Zehnder said he was concerned about the details of collection. The response was that the property owner would collect the tax and submit it to the town.

Manny Smith spoke in favor. “Tourists put a huge burden on Wellfleet,” he said. “Tourists are not paying their fair share. The average tourist is better off than the average Wellfleetian. This is not a tax on Wellfleet homeowners.”

Curt Felix said he was “opposed very strongly” and added, “It’s a false economy we have here in tourism land.” He also pointed out that the burden would be on people who rent for less than $2000 and suggested Wellfleet try to control spending instead.

John Wolf pointed out that not every landlord would be able to pass the tax on to renters, that some people rent rooms to those who work in the town over the summer.

Nate Johnson suggested tightening the budget instead. He stated that friends came to visit in August and found Wellfleet expensive already.

Brent Harold said that market determines price, so landlords could not simply add it on and assume it would make no difference to a rental business.

Berta Bruinooge pleaded, “This is a pill we need to swallow.”

Janet Lowenstein said, “I ran a B&B for 11 years and a weekly rental cottage. I collected room tax. It didn’t come out of my pocket. In 11 years, not once did anyone refuse to come because of the tax.”

Article 20 passed. How do you feel about it?

Comments (5)

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I am not surprised - a new fee or tax always gets a green light in Wellfleet - but I know several on the NonResident Taxpayers Association that will be very displeased.

Wellfleet's economy is much like a sole-source aquifer. The spring of capital flows in from tourism and provides the town with an essential, irreplaceable resource, without which it would surely wither and fade.

As such, poisoning the well with blame and burden don't seem like wise choices. Manny Smith's comments about "burdens" and paying a "fair share" are ill advised. Imagine a tiny town where rentals easily cost several thousand dollars a week, a lobster roll is $26, entrees are frequently $30+, you have to pay to get rid of refuse properly, park a car, light a fire, paintings and art run in to the thousands ... all that and you've not paid a "fair share" ! It would be laughable if not at once absurd and offensive. It seems that ONLY tourists pay a "share," fair or not, as they are treated as walking, bottomless ATM machines to fund the town's outsized (for its tax base) spending spree(s). Property taxes alone could never fund the town's largesse. Any government that is on a constant quest for "new revenue sources" is a predatory entity.

Its all starting to leave a sour aftertaste. We are hounded by signs about special birds, threatened with fines, shamed off the dunes, squeezed off of the waterfront, watched like a criminal when we dispose of wrappers from the rental car, unable to park anywhere, and squeezed for every last dollar every time we purchase something. Really, we can (and do!) deal with regulations, taxes, fees, markups, and even political activism foisted upon us when we just want to disconnect from the real world with our toes in the sand. And I am very tolerant of the crowds, the route 6 traffic jams, the bread lines, the ticks, the flies...

But everyone has their limit. Our family has been coming to the same spot in Wellfleet for decades, and this summer, I am beginning to explore other options for the first time in many years. We only spend 3 to 6 thousand dollars in and around Wellfleet, depending on how much we eat out, what we buy, etc., but I'm afraid Wellfleet may miss out entirely on that revenue this summer. We have beach options very close to home that offer far more return on my investment and don't vilify my presence as "burdensome" or accuse me of not paying "enough." Someone can inform Janet Lowenstein that she's now incorrect.

It's a shame, but every dollar spent is a vote, and places DO change, businesses come and go, and attitudes evolve. When "change" comes and it isn't what you believe in, you vote for something else. Perhaps 2012 is time to give something new a try. Siesta Key has adopted, and practices the "precautionary principle" and is only a few hours away... that white pure quartz sand and turquoise water make strong arguments for themselves even without Manny Smith's "Unwelcome" mat. There's even an Oyster Bar.
We have a rooms and meals tax in NH, it is now 9%. I live in a tourist area that is getting more and more crowded in the summer and fall season. Tourism has its costs and I think it is fair for the town or state to tax it. We need extra police in the summer, we need river patrols because of problems with groups on the river. We have traffic problems. The problem of accessible public bathrooms comes up as a town issue, since we don't have them except what merchants offer. Here in the mountains, the cost of paying for hiker rescue is an issue. The cost of maintaining trails and parks is an issue with more people wanting to use them.
Tourism must add to Wellfleet's water and septic issues, plus traffic, trash disposal, beach clean up etc.
Meals are taxed if the check is over a certain price, I believe. The town could choose to not tax lower cost rentals, if they choose.
david wright's avatar

david wright · 670 weeks ago

I'm not sure how I feel about this issue, but there are two things I'd like to bring up.
1) My distinct recollection is that Mr. Pilcher said the Town "gave" 5000 beach stickers. Might give credence to the vibe Stan is getting above, as I'm sure those who bought them wouldn't have used that verb.
2) To me, the salient point of Mr. Felix's remarks was that the 2nd home property owners who do rent pay taxes for services...like schools...that for the most part they do not use. Fair to tap them again?
The town should trim its sails and accept some responsibility. When it was suggested that we need to build a new building (on the site where we let one rot) to house office workers feeling unwell from something in the Palladian highway barn we have yet to finish paying for, w/ not a word of empirical evidence or remorse, it's time for a reality check. We can't have everything we want and expect someone else ...visitors...or 2nd home owners...to pay for it. It may shock some, but I don't think they come here for our new sidewalks, roads, buildings or even ambulances. They come here for 8 weeks of glorious,breezy weather and the beach...courtesy of Mother Nature.
1 reply · active 670 weeks ago
Thanks for these remarks and corrections, David. Paul Pilcher may have used the words "gave out." I'm not sure. Also, thank you for adding to what Curt Felix said. I was not able to get it all down since he was talking fast.
david wright's avatar

david wright · 670 weeks ago

You do a v. good job Sandy.

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