$110 Million in Potential Tax to Go Uncollected in New York City
New York, NY (EMBARGOED : OCTOBER 19, 2016) – Airbnb’s total addressable state-level tax revenue
for 2016 is $440 million based on current availability and booking volume on the popular vacation rental
app. Based on current tax policies, $260 million of that total will go uncollected. That’s the finding of a
new study published today by AllTheRooms.com, the world’s largest accommodations search engine.
The study, 440 Million Reasons to Tax Airbnb Vacation Rentals [INSERT LINK], analyzed detailed booking
and pricing data to project Airbnb’s nationwide occupancy and revenue figures for calendar year 2016.
Standard hotel tax rates in each municipality were then applied to these figures to determine the total
addressable tax revenue from Airbnb rentals if they were taxed at traditional hotel rates. Because
Airbnb rentals are only currently taxed in select municipalities, the study found that $260 million of the
total addressable $440 million in potential state tax revenue will go uncollected in 2016.
“Airbnb has so thoroughly disrupted the travel and tourism industry that many state regulators and tax
authorities have yet to come up with a solution that allows them to appropriately tax this new form of
vacation rental,” said Joseph DiTomaso, AllTheRooms.com Co-founder and CEO. “By using our
comprehensive database and advanced search algorithms, we’ve been able to put the scope of this
challenge into concrete dollars and cents terms: $260 million in state tax revenue will be left on the
table this year while lawmakers figure out how to tax Airbnb.”
Following were some of the key findings in the analysis:
• $110 Million in Tax Revenue to Go Uncollected in New York City: In New York City, Airbnb’s
largest market, a projected $110 million in tax revenue will go uncollected in 2016 unless the
legislation governing short-term rentals is changed.
• $177 Million in Tax to be Collected Nationwide in 2016: Following aggressive lobbying efforts
by Airbnb, some level of tax is now collected on Airbnb rentals in 26 different states. Though the
level and scope of these taxes vary widely in each state, Airbnb is now projected to collect $177
million in state-level taxes in 2016. $260 million will go uncollected on a nationwide basis.
• Early Movers in Texas, Mass., and Tennessee Maximizing Vacation Rental Tax Revenue: A
number of states who have already implemented state-wide Airbnb tax standards will see tax
windfalls this year. Among them: Texas ($18.4m), Massachusetts ($16.9m), and Tennessee
The full report, 440 Million Reasons to Tax Airbnb Vacation Rentals [INSERT LINK], is part of an ongoing
series of travel and tourism industry analyses published regularly on AllTheRooms.com Analytics. Other
reports in the series include Top Countries by Airbnb Unit Count, Top States by Airbnb Unit Count,
and―coming soon―The AllTheRooms.com Vacation Rental Index, which tracks inventory and pricing
data for all available vacation rentals in the top 50 cities of the United States. For more information, click
AllTheRooms.com is the world’s largest accommodations search engine. Unique among travel websites
for its ability to instantly search every single available accommodation—from a traditional hotel room
listed on Expedia to a couch for rent on Craigslist—AllTheRooms.com is able to aggregate data from
sites like Airbnb, Priceline, Expedia, Tripadvisor, VRBO, HomeAway, and dozens of others to identify
total vacation rental availability worldwide. By virtue of its ability to probe into every corner of the
vacation accommodation marketplace, AllTheRooms.com is also the largest aggregator of
accommodations industry data. For more information on AllTheRooms.com, please click here. For more
information on AllTheRooms.com travel industry data and analyses, click here.
J. Roderick Public Relations