Thomas Henney

Chairperson and Members of the Committee, Thank you for the opportunity to testify. I am here today in opposition to House Bill 1580 as a small property owner who operates a short-term rental and is already barely breaking even after taxes, insurance, maintenance, utilities, mortgage costs, and local fees. Like many small operators, I am not a large investor or out-of-state speculator. I am a local property owner trying to hold onto a single property that helps cover my expenses. The additional 0.75% surcharge proposed in this bill would not come out of “extra profit”—it would come directly out of my ability to keep the property at all. This Bill Hits Small Owners the Hardest HB 1580 applies to properties valued at $500,000 or more. In today’s market, that threshold includes many modest homes that have simply appreciated over time. For a property at the minimum threshold, the surcharge would be $3,750 per year, not including the risk of an additional penalty. For someone already operating at or near break-even, that is not manageable. This bill assumes that non-primary residence owners can absorb new taxes. In reality, many of us cannot. We already pay full property taxes, local fees, lodging taxes, insurance premiums, and rising maintenance costs. This surcharge could easily turn a barely viable operation into a loss. Unclear Rules and Risk of Penalties The fiscal note itself points out that the bill is unclear about how the 10% penalty would be calculated and that the implementation timeline is unrealistic. As a small business owner, I cannot operate under rules that are uncertain, subject to interpretation, and potentially enforced differently from town to town. I am also concerned about the new annual certification requirements and the possibility of appeals and audits. For small owners without legal or accounting staff, this adds risk and complexity that larger operators can absorb—but individuals like me cannot. Economic Consequences for Communities If this bill passes, many small short-term rental owners will be forced to raise prices, sell, or exit the market altogether. That affects more than just property owners. It impacts: Local cleaners, contractors, and maintenance workers Small businesses that rely on visitors Property upkeep and reinvestment in housing stock Rather than improving housing or affordability, this bill may push small operators out while leaving only large investors who can absorb higher taxes and compliance costs. Conclusion HB 1580 does not distinguish between large investors and small, local property owners who are simply trying to cover their costs. For people like me—already operating on thin margins—this bill is not a minor adjustment. It is the difference between staying in business and being forced out. For these reasons, I respectfully urge the committee to recommend “Inexpedient to Legislate.” Thank you for your time and consideration.