We are pleased to announce that this weekend AllTheRooms received additional press off the heels of our recent Vacation Rental Market Analysis – “440 Million Reasons to Tax Airbnb Vacation Rentals.” The full study is available and can be downloaded on alltherooms.com/analytics. Our press release is available on our blog: AllTheRooms.com Projects Total Addressable State Tax Revenue from Airbnb at $440 Million in 2016.
Financial Times (October 21, 2016): Cities Get Wise to Airbnb
Digital Trends (October 22, 2016): Estimated 2016 Airbnb Tax Loss to States $260 Billion, Says Study
Yahoo (October 22, 2016): Estimated 2016 Airbnb Tax Loss to States $260 Billion, Says Study
UTC Echo (October 23, 2016): Gov Cuomo Authorizes Fines Illegal Airbnb Rentals in NY State
San Francisco Business Times (October 23, 2016): Here’s how much Airbnb would owe if it were taxed like hotels (story excerpt below)
Bloomberg BNA (October 25, 2o16): Airbnb has $440 million Tax Tab: Report
Here’s how much Airbnb would owe if it were taxed like hotels
Silicon Valley/San Jose Business Journal
By Tessa Love
October 21, 2016
If Airbnb were taxed in the same way as hotels, the hospitality startup would owe $260 million more in taxes, according to a new report.
The report, issued by accommodations search engine AllTheRooms.com, projects that if transient occupancy taxes (TOT) were collected on all Airbnb bookings, the total nationwide for 2016 would be $437 million. Under current regulations, Airbnb will pay $177 million in taxes, a difference of $260 million.
Twenty six states have no existing regulations in place, including New York – Airbnb’s largest market – which AllTheBookings.com estimates is missing out on $110 million in TOT revenue. After New York, Hawaii is owed the most by AllTheRooms.com’s projection, having missed out on $51 million. Texas comes in third with $19 million, followed by Massachusetts and Tennessee with $17 million and $14 million, respectively.
AllTheRooms.com searches available accommodations and aggregates data from sites like Airbnb, Priceline, Expedia, Tripadvisor, VRBO, HomeAway, and dozens of others to identify total vacation rental availability worldwide. As such, the company said it is able to collect data on all Airbnb listings to figure out total occupancy and revenue.
“Airbnb has become a very useful, viable option in today’s travel climate,” said William Beckler, chief technology officer and co-founder of AllTheRooms.com. “We’re hoping to shine a light on the massive changes in this industry that need modification.”
For Airbnb’s part, the company has said in the past that they are for taxation fairness, but do not collect taxes voluntarily unless a given city, state or county will negotiate for legal recognition of home-sharing, which is still a gray area in many municipalities.
The company has found itself at odds with several cities over regulatory issues, including its hometown San Francisco. New York is Airbnb’s biggest battle ground. Governor Andrew Cuomo signed into law a bill last week that bans the advertising of short-term rentals, meaning that hosts could not list a full apartment for rent on Airbnb for less than 30-day increments. Hosts caught listing their unit would be fined up to $7,500 — more than most Airbnb hosts in New York make in a year.