Bucking a growing trend, the City Council has decided not to pursue a voluntary tax agreement with Airbnb where the vacation rental giant would have paid the city a quarterly lump sum of lodging taxes.
The responsibility for paying the tax is with the property manager of a vacation rental. With more and more transactions happening online, cities often have difficulty keeping track of whether rentals that use Airbnb are registered and paying their fair share.
To help address that concern, Airbnb has contracted with more than 360 jurisdictions around the world in voluntary tax agreements, which promise to pay cities 100 percent of the lodging tax owed, including from vacation rentals not registered with the city, under the condition that the vacation rental owners remain anonymous. If the agreement were in place last year, 150 rentals the company has on record would have paid $110,000 to Cannon Beach.
Unlike other lodging intermediaries like Travelocity or Expedia, Airbnb only pays lodging taxes directly to cities through these voluntary agreements. Seaside entered into an agreement with Airbnb last summer, joining more than 20 other cities and counties in Oregon.
Read the full story at the Daily Astorian.