Minister of Municipal Affairs and Housing, Selina Robinson, is joined by Finance Minister Carole James and Alex Dagg, public policy manager for Airbnb Canada for an announcement at the B.C. Legislature Feb. 7, that the short-term rental provider will now pay sales tax to the province. Kristyn Anthony/VICTORIA NEWS

Airbnb to collect provincial sales tax in B.C.

The company will begin gathering 8 per cent PST and the up-to-3 percent MRDT

Airbnb will now pay provincial sales tax to the B.C. government.

B.C. Finance Minister Carole James made the announcement in Victoria on Wednesday, saying the government had been looking at new tax models that will help with tax fairness.

“This is about a fair playing field, especially in the hospitality industry,” she said.

RELATED: Airbnb on the rise in Kelowna

Airbnb will begin collecting the 8 per cent PST and the up-to-3 per cent municipal and regional district tax (MRDT) generated through short-term accommodations provided within the province.

To streamline this process, Airbnb will remit on behalf of its hosts in B.C., ensuring no additional administrative burden is placed on them.

Many municipalities already regulate short-term rentals and the province says this tax will assist municipalities on other levels. Money collected by this tax will help fund affordable housing in the province as well as provide tax fairness for the hospitality industry.

RELATED: Vancouver wants to license Airbnb hosts

James said with Airbnb becoming involved with a sharing agreement it will push other short-term rental companies to do the same.

“This is a defining moment for Airbnb in British Columbia,” said Alex Dagg, public policy manager for Airbnb in Canada. “These changes are a welcome opportunity to continue helping the province and its residents benefit from the positive economic impacts of home sharing.”

According to the B.C. government, if Airbnb contributed to this tax in 2017 they would have collected about $18 million.

Airbnb first began remitting taxes in Portland and is looking to do so in other areas where there are short-term rentals.

Besides contributing to affordable housing this tax will also go towards promoting local tourism.

Like us on Facebook and follow us on Twitter.

Just Posted

Surrey school district surpasses projected enrolment

Lastest student numbers as of Sept. 30

Surrey Schools reminds parents, students of cannabis restrictions

District says approach ‘similar’ to alcohol, tobacco policies

Surrey Christmas Bureau ready to roll in well-known Whalley building

Organization’s Toy Depot to open at former Stardust rink Nov. 6

Former Surrey cop Dario Devic gets four-month ‘jail sentence to be served in the community’

Former RCMP officer will be under house arrest for two months after Creep Catchers bust in Surrey

Singer k.d. lang receives Alberta’s highest honour

Celebrated singer-songwriter k.d. lang received the Alberta Order of Excellence in Edmonton

Ocean “Blob” returns to North Coast of B.C.

A 2,000 kilometre patch of warm ocean water could signal a warm winter in Prince Rupert

Pot sales down by nearly 70% on Day 2 of legalization in B.C.

Several products on BC Cannabis Store are still sold out

B.C. jury finds man guilty of Japanese exchange student’s murder

Natsumi Kogawa was found at empty heritage mansion shortly after she was reported missing in 2016

B.C. man accused of killing Belgian tourist along Highway 1 appears in court

Sean McKenzie, 27, made second court appearance since his arrest in connection with the murder of Amelie Sakkalis

Colourfully named cannabis products appeal to youth, Tory health critic says

Conservative health critic Marilyn Gladu says the Liberal government needs to do more to ensure cannabis products available online are not enticing to young people

Trial set for man charged with decades-old murder of B.C. girl

Garry Handlen accused of killing Merritt girl; also charged with Abbotsford murder

Disney on Ice returns to Vancouver with Moana in starring role

Eight shows at Pacific Coliseum in late November

B.C. high school teacher faces sexual assault charges

A Mt. Boucherie teacher has been charged with child luring, sexual exploitation and sexual assault.

Most Read