Franklin files bill protecting vacation home rentals

State Rep. Diane Franklin, R-Camdenton, has filed legislation addressing tax assessment of homes rented on a short-term basis to vacationers in Missouri.

House Bill 632 would add one new section to the Missouri Constitution, discussing terms and uses of real property.

That section would specify where real property is used for more than one purpose, the county assessor should allocate to each classification the percentage of the true value of the property devoted to each use - except "that no property used for transient housing that qualifies as residential property" would be classified as "anything other than residential property."

The bill is to protect homeowners who want to rent their homes to others for short periods of time, according to a news release from Franklin's office.

"Many people in our area and throughout our state purchase homes as an investment or maybe as a home to someday retire in but in the meantime choose to rent it to vacationers to help offset the investment," Franklin said. "This legislation does one thing and one thing only. It states that a home, regardless if the homeowner lives in it year round or decides to rent it to others, must be assessed at a residential rate."

Franklin said in some instances individuals who rent their homes in short-term agreements find they are being assessed at a commercial rate, increasing their tax burden. Many are also concerned once a home is assessed as commercial property, it opens the door to the government requiring them to install commercial equipment, such as sprinkler systems, found at a commercial business.

Franklin's legislation states those homes assessed at a residential rate, will be protected from other government regulations and requirements, according to the news release.

"Vacation home rentals are big in the state of Missouri and especially in our area. My legislation will protect the homeowners' right to continue to do with their property as they wish without an increased tax burden and fear of more government regulation," she said. "These homeowners contribute a great deal to our economy, and I am just trying to help protect their investment and basic property rights."

Franklin represents the 123rd District, which includes Camden and Laclede counties.