Vacation Rental News

Vacation Rental Ordinance for the City of Marathon

The Marathon City Council approved a vacation rental ordinance Tuesday that makes agents more accountable and simplifies penalty guidelines for Code Compliance staff.

Changes to the existing law require licenses for property owners or agents dealing in vacation rentals and clarifies rules regarding trash bins, occupancy and parking at vacation rentals. Rentals are for a minimum of seven days and no more than 28 days.

The council brought up amendments to the law after residents complained of noise, overcrowded houses and parking issues at some rentals.

The council discussed parking concerns at length Tuesday, ultimately deciding on two changes to the law:

  • Rental owners or agents are required to maintain a list of vehicles and their makes and models at the rentals in case of complaints. The council dropped a requirement for driver's license information after several residents complained.
  • Parking will be allowed in the right of way, but only in front of the rented property.

    "The [wording] runs something to the effect of 'where it is common practice on the street.' The addition [by the council] was only in front of the property itself. That's going to be part of the consideration when one of our people goes out and looks at a property," city Planning Director George Garrett said.

    The council struck a provision in the law that essentially treated rental owners differently than their renters when the owner is using the home; rules were more strict for renters. That includes issues with noise, occupancy limits and garbage bins.

    "That requirement is gone, but there's still a list of when there's somebody renting the place. If we need to know that, we can," Garrett said.

    Garrett said another significant change is that owners and real estate agents representing vacation rentals are now required to hold licenses for that activity. The idea is they'll be held more accountable when complaints or violations occur and could eventually lose the right to rent property.

    "The other thing is it was a very convoluted penalty section in the original version," Garrett said.

    Gone from the law is major and minor violation language making it difficult for city staff to enforce it. A violation is a violation under the new ordinance and following are suspension and license revocation guidelines:

  • Suspended license after three violations in 12 months.
  • Revoked license after three violations in 12 months where a suspension has occurred within five years.
  • Revoked license after six violations in 12 months.
  • Revoked license for five years if a rental is advertised with a suspended or revoked license.

    The city also removed the law from its land development regulations and will make it part of city code, thereby leaving state oversight out of future amendments.

  • New 1099 reporting will burden businesses

    New 1099 reporting will burden businesses

    WASHINGTON – Feb. 11, 2011 – Under the Patient Protection and Affordable Care Act approved last year, businesses will have to file an IRS Form 1099 for each vendor from whom they spend more than $600 in goods or services in any given tax year starting in 2012.

    In testimony before the House Small Business Committee on Wednesday, Mike Kegley, president of the Home Builders Association of Kentucky, told lawmakers that the collection of W-9 forms, monitoring payments over the course of a year, and additional staff time will cost individual small businesses thousands of dollars per year.

    Kegley, who built six homes last year and employs seven workers, estimates his firm would have had to file an additional 173 forms for 2010 had the law been in effect. “It would have cost my company $6,400 to obtain and catalog the W-9 forms and $2,600 to generate the additional Form 1099s, for an estimated total of $9,000,” he said. “Rather than hiring additional workers to expand and grow, small businesses will be spending money on accountants and bookkeepers in order to keep up with these new requirements.”

    The National Association of Home Builders has taken an active stance against the new 1099 reporting requirements, claiming it will make it even more difficult for small businesses to compete with larger, corporate businesses.

    “Businesses large and small that sell goods will receive thousands, if not tens of thousands, of additional forms that they will have to match against their records, Kegley said. “Businesses will be overwhelmed.”

    NAHB also says that smaller firms will try to reduce their paperwork burden by purchasing from fewer sources.

    Independent landlords

    While all small businesses will be hit by the broader 1099 reporting requirements next year, the Small Business Jobs Act of 2010 stipulates that independent landlords – effective as of Jan. 1, 2011 – must submit 1099s for transactions totaling more than $600 in a year.

    “By imposing this change in the law with less than three months notice, we believe it is reasonable to say that landlords have been set up for failure when it comes to compliance,” said Kegley. “NAHB urges Congress to reexamine the wisdom of imposing these burdensome requirements on independent landlords and, ultimately, to repeal them.”

    Meanwhile, the Senate on Feb. 2 adopted an amendment to the Federal Aviation Administration reauthorization bill to repeal the new 1099 reporting requirements in last year’s health care law.