Airbnb to collect, pay taxes on behalf of Alabama hosts

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[Photo Credit: airbnb]

In a news release this week, the Alabama Department of Revenue (ADOR) announced that Airbnb will begin collecting remitting taxes for the department on its host sites in Alabama.

Airbnb is a San Fransisco-based company that provides an online place to “list, find and rent short-term lodging,” most often in the houses of willing homeowners. The service offers a more personal lodging space for travelers interested in lower fares and a unique experience.
In the past, taxes have been paid to the states by those people opening their homes for short-term lodging, a process that made it difficult for the state to collect and oversee such payments. The new agreement will have the company personally collecting the state’s Transient Occupancy Tax.
This agreement adds Alabama to the list of a handful of other states already operating in this fashion.
“This agreement will increase compliance in this area, and I commend Airbnb’s willingness to take the steps necessary to ensure that the appropriate taxes are being remitted,” ADOR Commissioner Julie Magee said in the news release. “It’s a win for both the state and for Airbnb customers.”
The release goes on to say that the agreement with Airbnb will be a “huge benefit” for the state and generate “additional, much needed revenues.”
Currently, there are more than 300 Alabama homes eligible for lodging on Airbnb’s website, some as low as $37 a night, with the majority in the Birmingham area.

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