Nelson BOS approves Transient Occupant Tax increase
Carrying Costs Wiggle Up for STR Property Owners
Do you recognize this view? Swing by the Wintergreen Founders Vision Overlook during a weekday lunch hour and you’ll see plenty of work trucks parked here. Great cell phone coverage means we get to catch up on client calls and emails, and the view isn’t bad. It’s a stunning slippery slope on a blue sky day.
Speaking of slippery slopes, you may want to check what’s under the tree this year if you’re a Short Term Rental property owner. Be prepared to sharpen a pencil or two.
After punting a vote on the proposed Transient Occupancy Tax (TOT) earlier this summer, the Nelson Board of Supervisors voted yesterday to increase the TOT from 5% to 7%. The increase takes effect July 1, 2024, according to County Administrator Candy McGarry. Typically, these BOS meetings are live streamed on the county’s YouTube channel, but McGarry says internet issues monkey wrenched those plans. Cross your fingers the recording gets loaded to the channel later today.
But here’s what we know about how the vote came down: Outgoing Supervisor Barton made the motion to vote, with Supervisor Reed seconding the motion. Supervisors Barton, Harvey and Reed voted for the TOT increase. Supervisors Parr and Rutherford voted against it.
What does the 2% increase mean? Based on the county’s 2024 TOT projections, a 5% TOT would have brought in $1.8 million. A TOT at 7% represents a 40% increase of $720,000. (Note: It is unclear if those projections take into account the fact that 1) the increase won’t kick in until July and 2) STR bookings appear to be declining.)
How do we compare with our neighbors? At 7%, our tax rate is now just 1% lower than Albemarle County’s, and 1% higher than Augusta County’s.
Flip through the BOS packet in its entirety here.
In other news, the 2024 dues are out for properties at Wintergreen Resort. The annual WPOA dues for improved properties inches up from $1969/yr to $2067/yr. Several but not all condo associations have voted to increase assessments.
As of this writing, the MLS is showing 48 homes on the market at Wintergreen. That figure includes single family homes as well as condos and townhomes. On average, these properties have spent 99 days on the market (DOM). As snow begins to fall, that number should start to melt.
Santa, with all the market twists and turns thrown at us the past several months, we’ve been good this year.
But we are ready for some egg nog.