Amherstburg agrees with Essex regarding short-term rentals tax classifications

By Ron Giofu

A motion from the Town of Essex regarding tax classification of shortterm rental units has been endorsed by the Town of Amherstburg.

Essex town council passed a motion at its March 6 meeting where, according to a letter sent to Minister of Municipal Affairs and Housing Steve Clark, that the Municipal Property Assessment Corporation (MPAC), the Ministry of Municipal Affairs and Housing (MMAH) and “any other relevant bodies” investigate tax classifications of short-term rental units and to consider taxing such units as commercial as opposed to residential.

“In particular, council discussed the implications of having short-term rental units operate as a business within a residential community,” the Town of Essex’s letter states. “Council noted that allowing short-term rental unit operators to pay residential property taxes is inequitable to those business owners who must pay commercial property taxes, solely due to the location of their business.”

The letter was signed by Shelley Brown, the acting clerk, legal and legislative services for Essex.

Councillor Diane Pouget pointed out Essex sent the letter to the province and wondered if Amherstburg town council could support the letter.

“We will be dealing with short-term rentals in the very near future and maybe this could be part of our recommendations,” commented Pouget.

Mayor Michael Prue believed it was “an excellent thing” that Essex is requesting.

“It doesn’t cost us any money,” said Prue. “If the town and the councillors believe that this is a business and not a residence, they should be paying business taxes. It’s pretty simple.”

Prue added: “Is renting out your home to people every weekend a business? I would assume it is.”

The mayor said MPAC could return with a scenario that could say something like a person rents out their home for part of the year and live in it the rest and the taxes could be split.

“That’s up to them, not up to us,” said Prue.

Councillor Linden Crain asked if town council should wait until a short-term rental report is brought back to council for consideration. Town council started the process of studying the matter more closely last term after numerous residents around Amherstburg complained of issues including noise and trespassing from short-term rental units. An open house was held this past January where opinions were gathered on the issue of short-term rentals, with some residents vehemently opposed to them while others didn’t want to be lumped in with problematic properties, with the latter group also believing short-term rentals should be encouraged to come to Amherstburg.

In response to Crain’s question, CAO Valerie Critchley did not believe there was any risk in supporting Essex’s request.

“Whether you have short-term rentals in the community or not, this is about the tax classifications only,” said Critchley. “I don’t see a risk in that.”