Airbnb are popping up all over B.C. and this is no exception in our cozy little community. The British Columbia Government and Airbnb have arranged an agreement in which the online company can collect provincial sales taxes on all short term rentals through their web based platform. This will give some breathing room to help fund housing affordability.
Airbnb will begin collecting the 8% provincial sales tax (PST) and for municipal and regional district tax (MRDT) it will reach to 3% for short term accommodations. Airbnb will remit on behalf of its clients and ensures that no additional administrative burden will hit their wallet.
Alex Dagg, public policy manager for Airbnb in Canada said in a release, “This is a defining moment for Airbnb in British Columbia, these changes are a welcome opportunity to continue helping the province and its residents benefit from the positive economic impacts of home sharing.”
Airbnb was instrumental in stepping up to the table and agreeing to register its platform to collect the PST and MRDT, all on a volunteer basis. This is the first of what the B.C. Government hopes will become a trend in this industry.
Director of Economic Development, Nicole Fricot told the Current “This levels the playing field so vacation rentals pay their fair share in taxes, this will make it more legitimate in terms of bringing it into the fold of regulated business in BC and in Revelstoke.”
The Province believes that Airbnb will remit roughly $16 million through PST and another $5 million through MRDT with its current 18,500 providers.