A study shows Santa Fe is losing at least $2 million annually in uncollected taxes from unlicensed vacation rentals for tourists and short-term residents.
The Santa Fe New Mexican reports that the study presented to the City Council concludes that at least 600 unlicensed rental units are available inside city limits on a regular basis, despite a city law that caps the number of short-term rentals and requires annual inspections.
The city doesn't know if the units' owners pay the state-mandated gross receipts tax.
But the report assumes most licensed units are organized as businesses and pay the taxes, while those that are unlicensed probably don't.
There's pressure from hotels and bed-and-breakfast businesses who say unlicensed owners bring unfair competition because they can offer lower prices while evading taxes.
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Information from: The Santa Fe New Mexican.
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