Airbnb to Start Collecting State Taxes
“I think it’s a smart move for Airbnb it’s definitely going to help the state.”
Starting July 1, Airbnb will now collect a six percent usage tax from those renting a room or house through the website.
Airbnb is a short term and vacation rental site.
Right now, the property’s owners pay the taxes.
But starting next month, people who rent through the site will see a new tax on their bill.
Vacation rentals certainly aren’t anything new, but the way properties are being rented has changed a lot over the years.
Traverse City Tourism says this levels the playing field.
“The nice thing about that is it helps to even the playing field, it makes it a more fair and equitable market place so that they’re being assessed the same usage tax that the hotels and resorts are in this area,” Trevor Tkach, president and CEO Traverse City Tourism said.
Traverse City is the third biggest rental market in the state, next to Detroit and Ann Arbor.