If you rent out your holiday home as short term accomodation, one of the proposals in our proposed Long Term Plan could directly affect your property. Holiday homes In order to help fund the costs of our Economic Development Activity, we are proposing a new targeted rate of $200 plus GST per year applying to residential properties providing short-term accommodation. "Short-term accommodation" is defined as residential properties that are available for rental to visitors, except where these are already paying commercial rates. This rate will apply to all properties providing short-term accommodation including: properties marketed privately, properties marketed through letting groups such as Book-a-Bach, Bachcare or Real Estate agents, and Bed and Breakfast and home-stay operators offering less than four bedrooms per residence. It is proposed that Bed and Breakfast operators offering four or more bedrooms will be classified as a commercial property so commercial rates, which include an economic development component, will apply to these properties. We also signalled in our 2014/2015 Annual Plan that we would be reviewing the funding structure of our Economic Development Activity for those in the short-term accommodation sector. This review was prompted by a concern that there was an inequity between moteliers, who are subject to commercial rates, and others in this sector. Our Council's Economic Development Activity has many elements that support the tourism sector. Economic development includes contributions to the Coromandel Great Walks project and the Hauraki Rail Trail, funding Destination Coromandel and i-SITES and funding for major events. The new rate is so that short-term accommodation providers make a contribution towards the costs of economic development because they benefit from the visitors this activity attracts. Please note that this is just a proposal and submissions will help us make an informed decision. B&Bs Our review of the way we fund Economic Development Activity was prompted by a concern that there was an inequity between moteliers, who are subject to commercial rates, and others in the sector. As a result of this review, we are looking to change our current funding approach. We are proposing that large scale Bed and Breakfast, homestay and other similar short-stay accommodation that offers four or more rooms for short-stay accommodation (at any one time) will be re-classified as "Industrial and Commercial" for the purposes of assessing rates. Industrial and Commercial rates include an economic development component and wastewater is assessed per pan. The impact of a changed classification varies depending on the nature of your property. For indicative information about your 2015/16 rates including this proposed change please visit our rates calculator online at www.tcdc.govt.nz/rates. Another proposal relating to short-stay accommodation is a targeted rate of $200 + GST per annum for other short-stay accommodation providers, such as those marketing residential properties through Bookabach, Bachcare, Trade Me or small Bed and Breakfast operators. This targeted rate will not apply to your property. The new classification recognises the commercial scale of larger Bed and Breakfast operators which is the same as that of motels. The new targeted rate ensures that all other short-stay accommodation providers make a contribution towards the costs of economic development because they benefit from the visitors this activity attracts. Please note that this is just a proposal we are making and submissions will help us make an informed decision.