At our meeting in January regarding Short Term Rentals (STRs), many asked about the taxes and fees collected from tourist rentals in our community. Short Term Rentals are defined as properties rented through organizations such as VRBO and by individual homeowners.
Lodging Tax is 13% of lodging revenues. In 2018, Incline Village/Crystal Bay had $49.4M of lodging revenue generated from hotels, motels, timeshares, and short term rental of homes/condos. Just over $15M of lodging revenue was generated by STRs. This translates to 30% of the total lodging tax being collected from STRs.
SO WHERE DOES THE 13% LODGING TAX MONEY GO?
Here is the breakdown of the 13% collected and what portions are dispersed to agencies:
- 3.3125% is paid to the Incline Village Crystal Bay Visitors Bureau ($1.6M in 2018). The funds are used for marketing efforts.
- 3.3125% is paid to the Reno-Sparks Convention and Visitors Authority General Fund ($1.6M in 2018)
- 2% is paid to Convention Center Debt (SB 477) RSCVA-Debt ($988K in 2018)
- 1% is paid to National Bowling Stadium Debt (SB 112) City of Reno-Debt ($494K in 2018)
- 1% is paid to City/Civic Center (SB477) City of Reno/Sparks/RSCVA-Debt ($494K in 2018)
- 1% is paid to Washoe County ($494K in 2018)
- 1% is paid to Nevada State General Fund & School Support Fund ($494K in 2018)
- .375% is paid to the Nevada Commission on Tourism ($185K in 2018)