Hotel owners in Costa Rica are leading an effort to draft legislation that would tax vacation rentals such as condominiums and other lodgings that currently fall into a legal gray area.

The proposal, which is close to being introduced in the Legislative Assembly, would apply a hotel tax on rentals in Costa Rica booked through online platforms such as Airbnb, FlipKey, Tripping.com, HomeAway and VRBO.

The revenue raised would be directed to the country’s national parks and the implementation of the new Animal Welfare Law, said the report.

President of the Costa Rican Chamber of Hoteliers (CCH), Gustavo Araya is one of the leaders of the initiative.

Araya added they are awaiting a good moment introduce the bill so that it doesn’t get mixed up with the pressing fiscal reform initiatives currently clogging the legislative agenda.

Revenue from the hotel tax has traditionally gone to the Costa Rican Tourism Institute (ICT), but the new bill would direct resources to national parks, which are a main source of attraction for tourists, and to the National Animal Health Service (SENASA) for the implementation of the Animal Welfare Law, approved in June 2017, which is in need of resources.

Chamber members feel it is only appropriate that all rental lodging contribute in the same way to the local economy. Currently rentals through online platforms pay sales tax and income tax, but not the hotel tax.

“The additional cost would be charged to the tourist who decides to stay in condominiums, whereas if they decide to stay in hotels, the tax corresponds to the hotel, and not the tourist,” added Araya.

“We do not think it is an issue of unfair competition, we are not increasing the tax burden. It was a burden we had for years and we did not complain,” Araya argued.