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

Cedar residents protest homeless encampment near Nanaimo River

Residents raise concerns about environmental impact and crime, but offer also assistance

OPINION: It’s important that we exercise our right to vote

If we vote for a competent and collaborative council, the Hub City will thrive, says guest columnist

Discontent City can remain where it is until the end of next month

B.C. Supreme Court judge grants application for an extension to comply with injunction

Clippers bounce back and beat Eagles

Nanaimo defeats Surrey 6-2, next home game is this Sunday, Oct. 21

LETTER TO THE EDITOR: So much for ‘say no to drugs’ in Canada

I’m from the ‘users are losers’ generation, says letter writer

UPDATE: Shots fired at house during fight in Nanaimo

Shots were fired at about 2:30 p.m. Thursday in 500 block of Kennedy Street, say RCMP

Candidates for Nanaimo, Lantzville, RDN, school district

Local government elections are today, Oct. 20

Election 2018: candidate questionnaires

News Bulletin’s questionnaire responses for Nanaimo, Lantzville, school board, regional district

When to vote, where to vote, how to vote

Voting day is Oct. 20, with polls open 8 a.m.-8 p.m.

2018 municipal election: Few surprises on Vancouver Island

16 incumbent mayors will continue in their positions for four more years

Prank pizzas delivered to B.C. mayor on election night

The fake orders happened throughout Victoria mayor’s re-election campaign

Horvat nets OT winner as Canucks beat Bruins 2-1

Young Vancouver star had spirited scrap earlier in contest

Team Canada gold medal winners for first time in world curling championship

Team Canada earned gold in Kelowna at the 2018 Winn Rentals World Mixed Curling Championship

B.C. passenger caught smoking weed in a car issued $230 fine

Saanich police did a field sobriety test on the driver and deemed it safe for him to drive

Most Read