The city of Columbia voted to not require business licenses to short term rental properties on Monday night. The requirement for these licenses will not be needed until 2026.

A short term rental according to the city is “a residential dwelling unit, portion of a dwelling unit or room within a residential dwelling unit rented by a transient guest.”

The passing of this ruling would classify short-term rental properties like Airbnbs to be considered as hotels and require owners to have a business license. A business license in Columbia would cost owners $75 a year and require them to be regulated as hotels.

The final step of obtaining a business license involves receiving endorsements from city departments and an evaluation of city codes. City departments include fire safety, health regulations and building codes among other evaluations. This is in an attempt to make sure the new business is established in accordance to city guidelines. 

Council members expressed their concerns with safety precautions relating to the need for business licenses. Many members of the council believed in the idea of needing business insurance to go along with the license as a measure of safety concerns. 

Residents of Columbia opposed this idea and expressed their concerns with the idea of business insurance and some believed in the idea of renters insurance instead.  

Hotels pay a 5% tax on receipts, and this new ruling would require Airbnb owners to do the same. The city of Columbia estimates over $300,000 dollars in revenue after the first year of the tax.