Airbnb Collects Taxes in More Places to Keep Good Graces of Cities
Airbnb is a marvel of the modern era — people hosting people, allowing for more affordable travel all while providing a more intimate look at the day-to-day goings on of cultures around the globe.
Over the last couple of years, however, Airbnb has faced some opposition — mostly from destination cities that are less than pleased with the booking service for taking business away from their tourism industry and severely impacting how much the cities can collect in hotel and tourism taxes.
Airbnb initially fought back, but then decided a better strategy would be just to comply with local governments. Now the company partners with them to ensure the company’s hosts and guests alike are paying their fair share of hotel and tourism taxes.
If You Can’t Beat ‘Em…
Airbnb recently announced that starting May 1, it will add another 10 U.S. cities and counties, the entire state of Texas and 31 cities in France to its list of taxable destinations.
That means Airbnb will have agreements with more than 275 jurisdictions, which the company says means they’ll collect more than $240 million in collected and remitted taxes around the world.
Taxes vary greatly by location, so it’s difficult to say exactly how much more you should expect to pay. But this change won’t mean any dramatic alterations to the way you use Airbnb.
A blog post the company published states that the new system “ensures a streamlined process for our host community and lightens the administrative burden for state and local governments.”
Airbnb, which operates in more than 65,000 cities across more than 191 countries, plans to continue establishing these types of agreements with cities around the world in the coming years.
Here’s a full list of the cities in which Airbnb currently collects occupancy taxes. You can check to see if your next destination is on the list!
And if you’re struggling with some major wanderlust but are in need of travel inspiration, check out these incredible (and inexpensive!) Airbnb’s in every state.
Your Turn: Tell us about your favorite experience in an Airbnb!
Grace Schweizer is a junior writer at The Penny Hoarder. She’s currently dreaming up her next big trip — and it will definitely involve a stay at an Airbnb!