A year ago, I wrote:

• If you decide on short term rentals, you should register as a tourist establishment, publish notice of your registration and collect and pay your 16.39% sales and tourist taxes.

Well, a change in the law, and another year of experience, and it´s time for an update. Woke up Sunday morning to another day of sunshine, opened the daily newspaper, La Nacion, read all about Vuce President Joe Biden´s visit to Costa Rica, Nicaragua President Daniel Ortega´s call for U.S. aid (the more things change...) and, way in the back of the paper, found out that Costa Rica´s legislature had just repealed its 3.39% tourist tax on hotel rentals. That leaves the 13% sales tax on hotel rentals.

But what about condos? While the issue is not clear, after consulting with way too many Costa Rica lawyers and accountants, I have decided it is better to take an aggressive approach. The law imposes a 13% tax on hotel rentals, but it also gives certain breaks to hotels. Regulations attempt to extend this tax to all short term rentals of six months or less. However, condos that do not offer hotel services, such as a restaurant, do not receive the benefits of the hotel tax law, and, I have "concluded", are not required to collect and pay the tax. Since tax policy everywhere is more than a little arbitrary, I may come to regret this decision. Still, it seems to be based on the law, and worth the trouble of taking a good position. Time will tell.

Meanwhile, at The Oaks Tamarindo, we are offering bargain rates now that our 96 condos are completed and some of our owners wish to earn income from their purchases, bargain rates that do not include sales tax.