WKTV Staff
Kent County and Airbnb announced on July 18 a tax agreement authorizing the company to collect hotel taxes on behalf of its Kent County hosts and remit the revenue directly to the county.
With the tax agreement in place, Kent County will fully benefit from people visiting the region and staying longer through home sharing. Effective Aug. 1, Airbnb will automatically collect and remit the Kent County Lodging Excise tax (also known as the hotel/motel tax) for taxable bookings, making the process seamless and efficient for local Airbnb hosts and the county.
“As a global platform, helping hosts meet their income tax obligations is just one of the steps we have taken to contribute to the communities our hosts and guests call home,” Airbnb states on their website. “Over the last four years, we’ve also partnered with hundreds of governments around the globe to make it easier for our hosts and guests to pay their fair share of hotel and tourist taxes. By April 15, 2018, we will have entered into tax agreements with over 370 jurisdictions globally, and collected and remitted more than $592 million in hotel and tourist taxes throughout the world.”
Kent County is the latest of those tax agreements.
“We appreciate the cooperation of Airbnb in helping us achieve this agreement,” Ken Parrish, Kent County Treasurer, said in supplied material. “The Voluntary Collection Agreement allows Airbnb hosts to operate without having to try to calculate occupancy taxes. It also simplifies collection and audit processes; we have one solo, corporate taxpayer rather than many individual business operators. This agreement provides transparency and fairness for all of our lodging partners as well.”
The county’s top administrator also praised the agreement.
“I’m pleased to see this cooperative arrangement come together, thanks to the efforts of Airbnb staff and our teams in the Treasurer’s Office, the Administrator’s Office and Corporate Counsel,” Wayman Britt, Kent County Administrator/Controller, said in supplied material. “Our hotel/lodging industry should be treated fair and equitably. The arrangement with Airbnb helps in covering the expense for increased tourism and promotes economic well-being for our region.”
Collecting and remitting hotel taxes can be incredibly complicated. The rules were designed for traditional hospitality providers and large hotel corporations with teams of lawyers and accountants.
This marks Airbnb’s third tax agreement in Michigan.
The company previously collaborated last year with the Michigan Treasury Department on a historic tax partnership to collect and remit the Michigan use tax on all taxable bookings throughout the state. More recently, Airbnb and Genesee County announced an agreement allowing Airbnb to collect their local occupancy tax.
About 22,000 Airbnb guests experienced Kent County in 2017, which reflected 76 percent year-over-year growth.
For more information on Airbnb, visit airbnb.com .
