Airbnb Hosts Rejoice: Company Will Soon Collect Pa.’s Occupancy Tax

In less than a month, hosts will no longer be responsible for submitting the hotel occupancy tax to the state.

Image via AirBnB

Image via AirBnB

Airbnb hosts and guests in Pennsylvania just got a break.

Beginning on July 1st, Airbnb, will collect and remit hotel and tourist taxes, the state’s department of revenue announced today.

The commonwealth’s 6 percent hotel occupancy tax applies to the rental of properties — rooms, apartments, and houses — arranged through online or third-party brokers for stays of less than 30 days by the same guest.

Pennsylvania’s revenue department also collects a 1 percent local hotel tax on Philadelphia and Allegheny counties. Airbnb will collect and remit this tax for hosts as well.

Previously, Airbnb hosts were tasked with sending the tax to the state on their own. And guests usually pay the tax through the accommodation price, the cleaning fee, or through the fee for an extra guest.

The agreement will generate nearly $1 million in new revenue for Pennsylvania, said revenue secretary Eileen McNulty, and in a statement, Governor Tom Wolf called the deal a win-win for hosts and the state.

As of June 9th, the Philadelphia metro region, encompassing Bucks, Montgomery, Chester and Delaware counties, surpassed the rest of the state in number of active listings – 8,370 – with Pittsburgh metro area following at 1,160 active listings.

In 2015, Airbnb hosts in the Poconos had the highest earnings of any hosts in the state, garnering $7,100 on average, while hosts in the Philadelphia region typically made $4,900 last year.

This deal makes Pennsylvania the first state in the Mid-Atlantic region to establish a statewide tax agreement with Airbnb, joining states like Connecticut, Florida and Oregon nationwide.

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