Airbnb's partnership with around 400 governments around the world has helped the company collect and remit over $1bn in hotel and tourist taxes to date. The new tax is expected to raise about $400m a year for the US Treasury. However, the American Hotel and Lodging Association has said 90% of Airbnb users would otherwise have stayed in other lodgings, which would have generated similar tax revenue, and questions whether Airbnb’s voluntary programme means its does not pay its fair share of taxes.
Airbnb's partnership with around 400 governments around the world has helped the company collect and remit over $1bn in hotel and tourist taxes to date. With $100m collected in Los Angeles through the company's voluntary collection agreement, and similar arrangements in place across the US and Europe, Airbnb claims to be contributing to local economies. However, the American Hotel and Lodging Association has said 90% of Airbnb users would otherwise have stayed in other lodgings, which would have generated similar tax revenue, and questions whether Airbnb’s voluntary programme means its does not pay its fair share of taxes.