Post by High Priestess on Dec 4, 2015 15:27:58 GMT
SEe this article:
www.tcpalm.com/news/shaping-our-future/property-values/counties-will-see-more-bed-tax-revenue-from-airbnb-deal-with-the-state-2601ffe3-f6ca-321e-e053-01000-360506761.html
Treasure Coast counties will be seeing new tax revenue without even asking for it.
Airbnb, one of the nation's largest vacation-rental websites, began collecting occupancy taxes in Florida on Tuesday.
The San Francisco-based company that allows people to rent their homes or rooms to travelers has made a tourism-tax arrangement with Florida's state officials that took effect this month. Pinellas County is the first in Florida that will receive revenue under the new arrangement on any reservation made through Airbnb on or after Tuesday.
Indian River County Clerk Jeff Smith said he became aware of the Airbnb arrangement to collect the tax through the Florida Tourism Tax Association, and has contacted Airbnb to request a similar arrangement for homes and rooms rented in Indian River County. The 4 percent tax is collected on all short-term lodging — including hotels, campgrounds and other rentals of less than six months.
While 17 homes or rooms in the county are advertised for lease on Airbnb, according to Smith, there are many other properties managed and rented by others that could be collecting the short-term occupancy tax as well.
"We are actively going after all of them," Smith said. "So far, Airbnb has been wonderful to work with and they assure us they want to comply with the law."
Just with Airbnb, Indian River's Smith estimates, if all properties are rented out periodically to different tenants, the county could receive about $16,500 in additional bed taxes. If landlords already have been collecting the tax, Airbnb would now do it for them and remit it directly to the county. Airbnb also collects taxes in Chicago, Washington D.C., San Diego, Philadelphia, Phoenix and other cities in California and North Carolina.
In 2013-14, Indian River County collected $1.91 million in bed taxes. For 2014-15, the county collected $2.2 million and estimates the same amount or higher for 2015-16.
County budget director Jason Brown said tourism has been one of the strongest areas of the local economy and the county has experienced higher than expected revenue from bed taxes. He believes having a more centralized system for collection of the bed tax on any short-term rentals would certainly continue the increasing revenue trend.
"Whoever is renting out their home short-term will realize have to pay the tax," said Brown. "Compliance is going to be a lot better."
www.tcpalm.com/news/shaping-our-future/property-values/counties-will-see-more-bed-tax-revenue-from-airbnb-deal-with-the-state-2601ffe3-f6ca-321e-e053-01000-360506761.html
Treasure Coast counties will be seeing new tax revenue without even asking for it.
Airbnb, one of the nation's largest vacation-rental websites, began collecting occupancy taxes in Florida on Tuesday.
The San Francisco-based company that allows people to rent their homes or rooms to travelers has made a tourism-tax arrangement with Florida's state officials that took effect this month. Pinellas County is the first in Florida that will receive revenue under the new arrangement on any reservation made through Airbnb on or after Tuesday.
Indian River County Clerk Jeff Smith said he became aware of the Airbnb arrangement to collect the tax through the Florida Tourism Tax Association, and has contacted Airbnb to request a similar arrangement for homes and rooms rented in Indian River County. The 4 percent tax is collected on all short-term lodging — including hotels, campgrounds and other rentals of less than six months.
While 17 homes or rooms in the county are advertised for lease on Airbnb, according to Smith, there are many other properties managed and rented by others that could be collecting the short-term occupancy tax as well.
"We are actively going after all of them," Smith said. "So far, Airbnb has been wonderful to work with and they assure us they want to comply with the law."
Just with Airbnb, Indian River's Smith estimates, if all properties are rented out periodically to different tenants, the county could receive about $16,500 in additional bed taxes. If landlords already have been collecting the tax, Airbnb would now do it for them and remit it directly to the county. Airbnb also collects taxes in Chicago, Washington D.C., San Diego, Philadelphia, Phoenix and other cities in California and North Carolina.
In 2013-14, Indian River County collected $1.91 million in bed taxes. For 2014-15, the county collected $2.2 million and estimates the same amount or higher for 2015-16.
County budget director Jason Brown said tourism has been one of the strongest areas of the local economy and the county has experienced higher than expected revenue from bed taxes. He believes having a more centralized system for collection of the bed tax on any short-term rentals would certainly continue the increasing revenue trend.
"Whoever is renting out their home short-term will realize have to pay the tax," said Brown. "Compliance is going to be a lot better."