Del Mar is a popular vacation destination for visitors attracted by the beautiful beaches and Fairgrounds. With the summer season approaching the City Council is bringing a new measure to the ballot that will surely affect these vacationers.
The Del Mar City Council voted unanimously to put the rental tax measure before voters on the June ballot. The new tax would require hundreds of Del Mar homeowners to obtain a permit from the city for short term rentals of their vacation homes. Currently the transient-occupancy tax applies to stays of 30days or less at hotels, lodging houses, apartments, and condominiums, but doesn’t include houses or duplexes. Nearby cities like San Diego and Encinitas have already extended the city’s hotel tax of 11.5% onto vacation rentals and duplexes, paving the way for the city of Del Mar. The measure would raise about $175,000 a year to help pay for beach and park maintenance, fire safety and law enforcement.
The San Diego Taxpayers Association opposes the rental tax, and has raised concerns that it will burden homeowners that already pay property taxes, as well as issuing a loss of property rights. Supporters of the rental tax measure respond by pointing out that the tax will not be applied to the homeowner, but will be include in the cost for the vacationer. This way there is no double taxation for the homeowner, only the responsibility to retrieve the permit from the city. Besides causing a bureaucratic inconvenience for homeowners, other opponents to the tax add that it is a bad time to raise taxes while most are struggling. Some do not see the need to purpose the tax now, since the city of Del Mar is not in a deficit with its revenues exceed costs over the past few years. Del Mar Mayor, Richard Earnest counters this in saying that the tax is a strategy to avoid future deficit instead of reacting to a crisis.
Given that all visitors and current residents benefit from the maintenance of the beaches and parks, and fire safety and law enforcement, it is only fair that the people renting vacation homes pay the same tax as those who stay in hotels. This summer is bound to be a busy time in tourism in Del Mar, and whether or not the tax is approved and implemented will be up to the voters this June.
If you are thinking about selling or buying a home, please call Nick at 760-802-4166
Or you can e-mail me at Nick@mypfgroup.com
Nick Alameddin
Broker
C 760.802.4166
F 858.455.0100
DRE License #01426515
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