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article imageStates can't fight Airbnb, so they are trying to tax it

By Owen Weldon     Jul 29, 2016 in Business
A lot of states have come to understand that they can't completely get rid of Airbnb. However, a few states have decided to make money off of the home-sharing site by taxing it.
New Jersey has joined a growing list of states trying to tax Airbnb. In many states, as of now the company is not subject to the same taxes that motels and hotels are faced. However, New Jersey wants to extend the 7 percent sales tax and 5 percent transient accommodation fee to short-term rentals that are rented through services such as Airbnb.
The push for the measure comes at a time when vacation rental season is at its peak in New Jersey, particularly for the Jersey Shore.
Valerie Vainieri Huttle and Annette Quijano, co-sponsors of the measure, said it was all about fairness. The two democrats said they are trying to stay on top of advances in business and how they impact the economy — and the affect they have on brick-and-mortar businesses.
Quijano said there's nothing fair about one company being required to pay certain fees, while another one doesn't, even though they provide the same service.
The measure was introduced on Monday. It is the latest attempt by the state to regulate the sharing economy, which includes Airbnb and other companies such as Uber and Lyft.
Meanwhile, in Massachusetts Airbnb is favoring a Senate proposal. The proposal would require hosts who use Airbnb to pay state and local lodging taxes. A radio ad was released by Airbnb, and it said there's a bill that would provide more revenue to the state. The ad goes on to say that important services such as healthcare and education would be funded if the measure passes and they end up paying taxes.
More about airbnb, Taxes, Tax, States, New jersey
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