Five months after Raleigh officials declared room-sharing apps to be illegal in the city, online lodging service Airbnb has agreed to collect taxes in connection with stays in Raleigh booked through its site.
And not just in Raleigh.
“Today, we are happy to announce that beginning June 1, 2015, Airbnb will begin collecting and remitting hotel taxes from guests on behalf of hosts statewide in North Carolina and locally in the counties of Buncombe, Durham, Mecklenburg and Wake,” Airbnb announced in a blog post.
Airbnb also now collects taxes and fees in San Francisco, Portland, Chicago, San Jose, Malibu, and Washington D.C.
State and local regulators have been cracking down increasingly on so-called shared economy offerings such as Airbnb and ride-sharing services Uber and Lyft. State legislation is under consideration in the North Carolina General Assembly.
“This announcement comes after months of work between Airbnb and authorities across North Carolina on how to make it simpler for local residents to follow the rules and pay their fair share.”
Councilwoman Mary-Ann Baldwin has been negotiating with Airbnb on how to comply with Raleigh’s short-term rentals laws and announced the deal in a statement Monday.
“Airbnb is a popular piece of the new sharing economy that tourists and prospective residents expect to see in modern cities, so we are glad that we have taken the first step in welcoming Airbnb to Raleigh,” said Baldwin, who chairs the City’s Council’s Law and Public Safety Committee, which has been evaluating how best to integrate such services into the city.
Airbnb will start collecting North Carolina and Wake County sales and occupancy taxes on June 1, she said.
“This is a good first step, and I look forward toward working out safe and fair rules for home sharing in Raleigh,” she said.
Airbnb serves to connect homeowners with visitors seeking to rent a room as an alternative to a hotel stay.
Opponents say such services undercut hotel taxes and present a traffic problem for residential neighborhoods. Airbnb users argue that regulations on the service impinge on a homeowner’s right to use his or her property to make some extra income.
Under the city’s current “Bed and Breakfast” laws, such rentals are allowed, but only in historic districts, historic landmarks or properties listed in the National Register of Historic Places.
The Oakwood Inn, Raleigh’s only operating bed and breakfast, announced last month that it would close June 1, citing competition from Airbnb and similar services.
CREDITS
Reporter: Julia Sims
Web Editor: Matthew Burns
