The City of Victoria is anticipating that the provinceB次元官网网址檚 new taxation on short-term rental industry leader Airbnb will level the playing field between businesses and help provide much needed housing.
B次元官网网址淓ssentially the regulations the province brought in today are making Airbnb pay taxes just like any other business. ItB次元官网网址檚 making them play by the rules,B次元官网网址� said Victoria Coun. Jeremy Loveday, councilB次元官网网址檚 spokesperson on the issue.
B.C. Finance Minister Carole James echoed that statement at WednesdayB次元官网网址檚 announcement that her ministry has reached an arrangement with the home accommodation company that will enable it to collect provincial sales tax on all short-term rentals booked through its online platform. The decision is in line with the governmentB次元官网网址檚 move toward new tax models that help with tax fairness, she added.
AirBnB to pay sales tax in B.C.
B次元官网网址� Victoria B次元官网网址 (@VictoriaB次元官网网址)
B次元官网网址淭his is about a fair playing field, especially in the hospitality industry,B次元官网网址� James said.
Airbnb will begin collecting the eight-per-cent PST and up to three per cent in municipal and regional district taxes generated through the short-term accommodation its operators provide within the province.
To streamline this process, Airbnb will remit on behalf of its hosts in B.C., ensuring no additional administrative burden is placed on the operators.
Late last year the City of Victoria began to adjust its zoning regulations to prevent short-term rentals from springing up in and around downtown, as a way to help slow the removal of previously long-term rental suites for use as potentially higher-yield night-by-night rentals.
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Even with the B次元官网网址渨elcome announcementB次元官网网址� that funds will be collected to support the provinceB次元官网网址檚 housing affordability plans, Loveday said there was no expectation that the move would have any impact on the direction the City is moving in regulating short-term rentals through zoning bylaws and business licensing.
As for the affect on the end user, he said, B次元官网网址淚B次元官网网址檓 sure that operators will just pass these costs on to their guests.B次元官网网址�
B次元官网网址淔or the most part, the short-term rental operators that IB次元官网网址檝e spoken to have said they want to comply with the rules and they want to be contributing businesses.B次元官网网址�
James said with Airbnb becoming involved with a sharing agreement it will push other short-term rental companies to do the same.
B次元官网网址淭his is a defining moment for Airbnb in British Columbia,B次元官网网址� said Alex Dagg, public policy manager for Airbnb in Canada. B次元官网网址淭hese changes are a welcome opportunity to continue helping the province and its residents benefit from the positive economic impacts of home sharing.B次元官网网址�
According to the B.C. government, if Airbnb contributed to this tax in 2017 they would have collected about $18 million. The company first began remitting taxes in Portland and is looking to do so in other areas.
Besides contributing to affordable housing, the tax money will also go toward promoting local tourism.
B次元官网网址� with files from Jen Zielinski
