<body><div><figure><img src="https://img.particlenews.com/image.php?type=thumbnail_580x000&amp;url=1zjEsc_0vi85zj400" alt="https://img.particlenews.com/image.php?url=1zjEsc_0vi85zj400" width="327" height="500" ></figure>People who operate Airbnb, Vrbo or similar short-term rental housing in parts of Magnolia zoned for residential use have gotten attention from the Magnolia Advertising and Promotion Commission.And they may not like it.Kevin Barker, a commission member who owns The Loft and dozens of rental homes in the city, expressed concern at the Monday, September 23, 2024 commission meeting whether, specifically, Airbnb operators are paying the city’s 1 percent sales tax on motel and hotel rooms. He’s also concerned that Airbnb sites are being operated in residential neighborhoods that aren’t zoned for them.The amount of money that might be raised from taxing Airbnb locations is probably small, Barker noted. But he said the revenue would be enough to help the commission make contributions to events, such as the $2,000 the board approved Monday for the Downtown Magnolia District’s Fall Festival.“There’s been an increase in Airbnbs in Magnolia. I’m just wondering if these people are informed that they should be paying (the tax). I know it’s not a lot of money but every dollar counts. I know of four new Airbnbs that are operating in the last couple of months. I don’t know if they’re aware,” Barker said.Short-term rentals are generally defined as units occupied for 30 or fewer days.According to the City of Magnolia’s zoning regulations, “bed and breakfast” locations, hotels and motels are permitted in all commercial zones. "Bed and breakfast" locations are permitted in residential zoning if they first receive a “conditional use permit” from the Magnolia Planning Commission following a public hearing on the request.A conditional use permit would require the Planning Commission to determine that the proposed use would not be detrimental to or endanger the public health, safety, comfort or general welfare; not harm other property in the neighborhood; and not impede the normal or orderly development and improvement of the surrounding properties, among other provisions.“In Magnolia, we don’t have a lot of laws concerning this. We need to create some laws concerning this. I’m seeing Airbnbs pop up on like Azalia, Karen Circle, North Dudney. They’re in residential neighborhoods. I don’t believe that should happen,” Barker said.As an owner of multiple rental homes, Barker fears that the increased presence of Airbnbs, with non-residents frequently dropping into homes in established neighborhoods, will negatively affect property value.“We need to preserve certain areas for certain things. That’s why we have zoning laws,” Barker said.Commission Chairman Annette Pate said the board needs to make sure it collects all the money to which it’s entitled under the A&amp;P tax.The board took no formal action on Barker’s comments but will likely seek legal clarification on the application of the A&amp;P tax to short-term rentals.The board approved the Downtown Magnolia District’s request for $2,000. It will pay for certain advertising expenses, including a billboard, posters, banners and signs, and for musical entertainment.The Fall Festival will be Saturday, October 26, 2024 on the Magnolia Square. It will include a chili cookoff, games, food trucks, activities for children and other entertainment.Downtown Magnolia District hopes to raise funds to improve lighting, crosswalks and seating in the area of the Magnolia Square.(Full Disclosure: Magnolia Reporter LLC is a member of the Downtown Magnolia District).</div></body>

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Airbnb operators may face A&P tax, zoning issues in Magnolia

People who operate Airbnb, Vrbo or similar short-term rental housing in parts of Magnolia zoned for residential use have gotten attention from the Magnolia Advertising and Promotion Commission. And they may not like it. Kevin Barker, a commission member who owns The Loft and dozens of rental homes in the...