Tax at source, then backfill compliance

any municipalities have partnered with at least one of the Short Term Rental (STR) websites to ensure that STR hosts are paying their fair share of lodging taxes in their jurisdiction.  The STR website taxes the guests at source, and remits the taxes to the municipality (whether city or county).  Now some of those municipalities have code-compliance related requirements for obtaining a land use permit, a business license or both.  What ends up happening is the taxes obtained from taxing at source funds the compliance effort to ensure that bad actors in the industry (i.e. party houses) do not undermine the rest of the STR operators out there.

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