Vacation rentals drawing debate
SANTA FE, N.M. -- The city of Santa Fe is collecting lodger's tax and gross receipts tax from a vacation rental industry that is technically illegal according to city code -- an issue the city's legal staff will examine as debate over Santa Fe's short-term rental law continues.
The law prohibits renting homes for less than 30 days at a time, although many people who live in Santa Fe's north and east side historic districts have been fuming for years that the law remains unenforced by city officials.
A city short-term rental task force, meanwhile, has recommended that the rentals be made legal, a suggestion the city's Public Works Committee did not immediately buy into on Wednesday. Santa Fe city councilors on the committee directed the city staff to look at how other cities deal with the issue and to clear up some confusion about how and from whom the city collects taxes connected with the industry.
The task force has estimated that creating a registration and permitting process for the vacation rental industry could bring in about $1 million in annual tax revenue. But that money doesn't include the unknown amount of taxes already paid by professional management companies who operate vacation rentals, or the money spent in Santa Fe as the result of vacationers drawn to the short-term rentals.
Kokopelli Property Management owner Charlie Goodman acknowledged Wednesday that his company is operating vacation rentals illegally, but he joined roughly a dozen other supporters of the rentals in pushing the positive economic impacts of the industry.
"Granted, we are operating an illegal enterprise, but the city continues to accept the money from that illegal enterprise," Goodman said.
Goodman also said most of the horror stories associated with short-term renters who disrespect neighborhoods do not come from rentals run by Santa Fe's professional property management companies -- they come from homes that are rented directly by irresponsible and sometimes absentee property owners.
Several vacationers in town also spoke in support of the rentals.
Barry Smyth, from Cincinnati, said the availability of short-term rental homes in Santa Fe is a major draw for tourists looking for an alternative to hotel vacations. Smyth also described a laundry list of expensive purchases he and his wife make every time they visit. They spend roughly $20,000 a week in Santa Fe on everything from art to restaurants every time they visit, Smyth said.
"My wife does wonders for your economy," he said.
DonNell Rushing, from Houston, said she and other friends who come to Santa Fe are always respectful of the city.
"I know when trash day is. I know when recycling day is. We respect your city and take care of it," Rushing said.
Opponents of short-term rentals, such as Reggie Cox, described chronic problems with noise and traffic that come from vacation rentals in her east-side neighborhood. On one occasion, Cox said, she called the police three times in one night because of noise coming from an outdoor party and live band at a nearby vacation rental.
Dena Aquilina said "the city's lack of enforcement of this, I think, is a scandal."
The city Finance Committee will have another hearing on the issue on Monday.