For industries to thrive and for communities to benefit in BC, we need to adapt to ensure we share in that prosperity.
That was the message Finance Minister Carole James stated, before announcing the government will start collecting taxes from short term Airbnb rentals in BC.
The housing rental company will start charging 8 per cent PST and up-to- 3 per cent Municipal and Regional District Tax, something James says will be beneficial to the economy.
“The PST money goes into general revenue and we will utilize it for housing measure that you will see coming in the budget. The MRDT is a tax that will go to municipalities for tourism, so, they will be able to utilize those dollars for tourism, just as they do with the hotel tax.”
To streamline the process of collecting taxes, Airbnb will remit on behalf of its hosts in British Columbia, ensuring that no additional administrative burden is placed on them.
“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.”
This move will help fund housing affordability measures for British Columbians.
“Every penny makes a difference. It’s critical to make sure that we’re putting money in and, as I said, this really is about fair taxation, this is about making sure we have a level playing field. We know the sharing economy is here, this provides us an opportunity to make sure there is a fair system in place for everyone,” says James.
The province is estimating they will gain $16 million through PST and an additional $5 million MRDT. If this turns out to be fruitful, BC will also be looking into similar agreements with other housing agencies similar to air-b-n-b.
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