Airbnb is trying to make tax agreements with 700 more cities, adding to the 200 where it already has agreements to collect city taxes from renters.
The vacation lodging network, which has millions of users but also has had clashes with opponents ranging from hotels to local housing advocates, already has agreements with over 200 cities where rentals are legal or regulated. The tax is collected directly from the renter as part of the reservation.
Cities with agreements include Paris, one of Airbnb’s biggest markets. The 700 cities the company hopes to add to its tax network by the end of 2017 include markets generating more than 90% of its revenue.
One of the hotel industry’s big issues with Airbnb has been that while hotels must collect local tax, without agreements, it’s up to the Airbnb host to pay…or not. Airbnb hopes its willingness to collect and pay will blunt some of that issue.
In the meantime, Barcelona, one of Airbnb’s biggest markets, is fining Airbnb and another vacation rental site, HomeAway, €600,000 apiece for listing apartments that have not been registered with tourism authorities. City officials raised the fine from €30,000 imposed last year. Barcelona has been very concerned over visitor rental because of a serious housing shortage. The city’s administration has also fined local banks €315,000 per apartment for keeping apartments vacant and off the market.
Photo: Airbnb contest winners in bed at the Aquarium de Paris
