Renaissance MP Annaïg le Meur is putting a bill back on the table to help mayors regulate short-term rentals. She is also proposing a broader project to repeal the tax advantages enjoyed by Airbnb rentals.
It will not end up in oblivion. Before the dissolution, a Law proposition aimed at regulating short-term rentals, such as Airbnb, was under discussion in the National Assembly, led by deputies Iñaki Echaniz (PS) and Annaïg le Meur (Renaissance). Re-elected on July 7, the latter wants to return to the charge.
“I hope that the proposal will be taken up where it was, all that was left was the vote,” pleads Annaïg le Meur on BFM Business.
The text proposes a toolbox available to mayors, allowing them in particular to set up a registration system or quotas. “Currently, only cities with more than 200,000 inhabitants can regulate,” explains the Renaissance MP.
The proposal also aims to make the energy performance diagnosis mandatory for short-term rentals (currently it only applies to long-term rentals).
Short term rentals, sometimes “totally tax-free”
The MP is hopeful that this proposal “aimed at remedying the imbalances in the rental market” will be passed, even in the new Assembly.
“On the first shuttles, we had unanimity in the Senate, and unanimity in the Assembly, with the exception of the votes of the National Rally (…) But even without them, I think we will manage to get it passed,” assures Annaïg le Meur.
But a bigger project is in preparation. On July 15, elected representative Renaissance handed over a report ordered by the executive, and intends to tackle the issue of taxation head on. The aim is to promote long-term and affordable rental.
In her overview, the MP returns to the tax framework in force “both excessively complex and imbalance”. Short-term rentals, which are taxed less than unfurnished accommodation, allow you to benefit from higher deductions, even being “totally exempt from tax” in certain situations.
“Stop the current drift”
“This dichotomy of tax regime between unfurnished and furnished rental is considered by almost all of the mission’s interlocutors as having no justification, neither economic nor legal, and as inequitable, with a growing urgency to act,” writes the MP.
Concretely, this will involve eliminating the tax loophole that Airbnb benefits from. The report recommends putting an end to the BIC regime that considers short-term rental income as commercial profits. The text proposes taxing them as classic property income.
“It is urgent to stop the current drift in the rental market which is preventing a growing number of our fellow citizens from accessing housing,” concludes the MP.
Over the last six years, the number of unfurnished dwellings has recorded a slight but historic decline (-0.2%), while the number of furnished dwellings has increased by more than 50% over the same period.