The Bermuda Tourism Authority has issued a statement after a rental property owners’ group complained its members were being “taxed three times”.

The Bermuda Rental Association of Vacation-Home Owners said they were subject to land tax, a BTA fee of 4.5 per cent on every booking made and a new fee that came into effect with the passing of the The Vacation Rental (Application and Registration) Fees Act 2023 on September 1.

Tracy Berkeley, the chief executive of the BTA, said in a statement yesterday: “In response to discussions and recent reporting surrounding various vacation rental taxes and fees, the BTA would like to clarify that the BTA fee, which has been in place since 2018, is paid by travellers staying in a vacation rental, not vacation rental owners, and is in line with the tourism fee which is paid by hotel guests.”

The 2018 legislation requires all holiday rental properties to register with the Bermuda Government before accepting any guests. They must collect and remit a 4.5 per cent holiday rental fee to the BTA.

In a letter to David Burt, the Premier, and Vance Campbell, the tourism minister, the group said the legislation does not “advance sound economic policy in that our vacation rental properties are now effectively being taxed three times by way of land tax, the BTA tax and this new fee”.

The new legislation sets an annual fee for rental property owners based on the property’s annual rental value.

Properties with an AVR below $22,800 will pay $1,500 annually, those valued between $22,801 and $90,000 will pay $2,000, and there is a $2,500 yearly fee for property valued at $90,001 and above.

Land tax is charged under the authority of the Land Tax Act 1967 and the Land Valuation and Tax Act 1967.

The amount of land tax is based on the ARV bands with each tier calculated at the corresponding rate.