Dear Editor,
Short-term rentals (STRs) are income-generating properties. They are defined in the Putnam County Code of Ordinances as a business (Section 22-121), require a permit, pay hotel tax, are not owner-occupied, and do not qualify for a Homestead Exemption. The FY2025 Budget estimates that permitted STRs (in Putnam County) will generate $11.25 million in gross revenues. These are businesses.
At the (county commission’s) recent work session on the FY25 budget, Chief Tax Appraiser Charles Anglin told the commissioners that STRs were treated, i.e., valued, as “ordinary, single-family residences” and that they could be used as “comparables” to value nearby residences. This means that if a nearby property is sold as an STR for a higher value, due to the income potential, your property value – and your taxes – may go up.
Mr. Anglin further stated that if STRs are classed as businesses, the owner would have to inventory the contents. Since most STRs are in the unincorporated area of Putnam County and the county has both Type 1 and Type 2 Freeport Exemptions, the owner would not pay any tax on the contents. An inventory would just be an “inconvenience” of doing business.
It is noted that the preliminary net tax digest for Putnam County increased by about $200 million, of which about $150 million is due to the revaluation of existing properties. How much of the revaluation is due to the existence of STRs?
Stephen Hersey, Putnam County District 3 Commissioner