Drew Wilson
A new claims that Airbnb’s voluntary tax collection agreements with local governments are “unprecedented and vital,” the vacation rental platform announced Monday.
The report, produced by University of Connecticut law professor Richard Pomp, dives into the many tax agreements Airbnb has hammered out with local governments.
In 2018 alone, those agreements have produced tens of millions of dollars in tax revenues for Sunshine State municipal governments while padding Floridians’ incomes to the tune of $810 million.
While “hosts” — those renting their homes — are responsible for collecting sales taxes on their rental incomes under state law, they are often unaware of that requirement. It can also put a burden on municipal tax departments, especially in large counties with hundreds of property listings.
Through its voluntary tax agreements, Airbnb assumes the administrative and collections costs, and sends the cash directly to the proper government.
Pomp’s report, available through State Tax Notes, says the quantity and scale of the tax deals is unprecedented.
It also throws shade on traditional hotels, which argued Airbnb’s tax agreements are constitutionally irrelevant after the U.S. Supreme Court’s decision in South Dakota v. Wayfair, which requires online shopping platforms to collect sales tax even if they don’t have a physical presence in a state.
The report says that there is a gap in coverage between platform legislation and our agreements, and that Airbnb’s local agreements “remain vital and critical.”
