Realtors and short‑term rental operators urge protections for homesteads and flexible rental definitions

Representatives of the real estate and short‑term rental sectors told the House Ways & Means Committee the proposed classification could inadvertently harm Vermonters who rent accessory units to afford to stay.

Peter Tucker, director of advocacy and public policy for the Vermont Association of Realtors, framed second homes as a pillar of the state’s tourism economy and said short‑term rentals provide rooms tax revenue and jobs. He cautioned that the draft multipliers could create steep tax differences between homesteads and second homes and urged the committee to seek fair outcomes for all taxpayers.

Julie Marks, founder and executive director of the Vermont Short‑Term Rental Alliance, said many Vermonters operate accessory rentals to offset housing costs and asked that homestead properties remain taxed as homesteads in full regardless of on‑site rental activity. She recommended that the committee consider a three‑consecutive‑month rule to qualify properties as long‑term rentals for classification purposes, citing medium‑term rental demand from remote workers and contracted professionals.

Marks also urged the committee to weigh short‑term rentals’ local economic contributions — meals and rooms taxes, visitor spending and jobs — before reclassifying properties that are active in the tourism economy.

Both witnesses asked for explicit appeal and revision mechanisms so owners can correct classifications when property use changes year to year.