You know what they say, there are only two things that are certain in life – death and taxes. With the coming New Year just a few days away, there are, of course, some new fees and taxes to be reminded of.
Many cities and states are considering various property and lodging tax increases, which can impact short term, nightly and weekly rental properties – and possibly some longer term rentals too. Be sure to check with your city and state laws to make sure you’re in compliance with the latest lax laws.
One new tax law to be aware of, for example, is for property owners in Chicago. Effective January 1, 2012, the Chicago Department of Revenue will be increasing parking taxes and hotel accommodation tax rates. This may affect property owners in Chicago, so if you own a property in the Windy City, be sure to consult the Chicago Department of Revenue’s website for more details.
Remember, if you are a property owner, don’t get caught by the tax man in a mistake or misunderstanding. Do your homework. Consult with a financial and tax professional. And always be sure to verify with your city and state on possible lodging tax increases for 2012.