Airbnb to collect tax on Windsor rentals
A four per cent tax will be charged to guest bills
The online marketplace for short term rentals starts taxing renters in Windsor today.
Effective April 1, Airbnb begins collecting the municipal accommodation tax in Windsor. It's a tax already collected elsewhere in the world, typically used for municipalities to fund tourism programming.
"We're really happy that we've been able to reach an agreement with the City of Windsor," said Alex Dagg, director of public policy for Airbnb Canada.
"What that means is when someone books a listing in Airbnb in Windsor, there will be a four per cent tax charged to that guest on their bill."
Airbnb will then send that taxed amount quarterly to the city.
Airbnb started collecting the tax for Ottawa last August, and taxes are also collected in Sudbury and Mississauga. Airbnb has more than 400 tax agreements across the world.
"We think it's a really great tax that makes sense for a lot of communities," said Dagg.
Revenue numbers will be shared publicly after the tax has been in place for about six months. In Ottawa, about $500,000 was collected by the city thanks to the Airbnb tax. That funding went mostly to tourism programs. In the first year in Quebec City, about $800,000 was collected. It's such a new program that revenue numbers for other cities are not available.
Cities can determine their own accommodation tax rate, but most cities in Ontario charge about four per cent.
"Our housing community in Windsor is small but vibrant," said Dagg. "It's great to be able to see our platform do this collection on their behalf so people coming to Windsor can contribute to how great the community is."