Illogical. A vacation rental is a house and not a hotel. You cannot build a hotel in residential areas. All homes in these areas have sky high assessments so vacation rentals do pay high property taxes.

They are both businesses so both pay the GET tax. But when you compare a regular rental with a vacation rental it turns out a vacation rental is actually an export product and is more helpful to our economy because it brings in external money to our economy.  This home is really being used in the highest and best way. Does the govt have the right to demand less?

Vacation rentals may have reputedly a higher profit margin than a regular rental, but that is still to be proven. There is probably just no demand from local residents who can not afford long term rentals in resort areas or beach front property. If there is no demand, then there is no profit to tax.