No News is Bad News. Join the SA Current Press Club.

Monday, May 1, 2017

Airbnb Starts Collecting, Paying Taxes in Texas as State and City Consider More Regulations

Posted By on Mon, May 1, 2017 at 12:58 PM

Starting today, Airbnb hosts in Texas will be required to pay a six percent state hotel occupancy tax, which the company will collect and then hand over to the state. The agreement, struck in April between the Texas Comptroller's office and Airbnb, is supposed to make it easier for hosts to meet state guidelines.

Laura Spanjian, public policy director at Airbnb’s southwest region, said the deal will solve a problem many hosts are having around the world: what to do about pesky government taxes.

“Could we actually take on the responsibility of the host and have Airbnb collect and remit the tax?” she said. “We realized, legally, we could do that if we had agreements with cities and states that in essence transferred responsibility from a host to us.”

In the relatively new sharing economy (which includes other companies like Uber, Lyft, GrubHub, and Favor), governments are still figuring out how to regulate an industry that is estimated to generate $335 billion by 2025.

This spring we've also seen disagreement between the state and cities over regulating Airbnb rentals. At the state capitol this session, one bill approved by the Senate would prevent cities from writing certain ordinances and banning short-term rentals. Yet at the same time, San Antonio City Council is considering implementing harsher restrictions on short-term rentals.

Some of the proposed rules would include requiring hosts to have a permit, limiting the number of rental guests to six, and requiring annual inspections from the city.

Incidences reported by Councilman Mike Gallagher's constituents prompted a review of the city's current policies towards short-term rentals. In an interview with the Rivard Report, Gallagher said his constituents were worried that their “residential areas were now becoming commercial areas.”

San Antonio Current works for you, and your support is essential.

Our small but mighty local team works tirelessly to bring you high-quality, uncensored news and cultural coverage of San Antonio and beyond.

Unlike many newspapers, ours is free – and we'd like to keep it that way, because we believe, now more than ever, everyone deserves access to accurate, independent coverage of their community.

Whether it's a one-time acknowledgement of this article or an ongoing pledge, your support helps keep San Antonio's true free press free.

Read the Digital Print Issue

November 18, 2020

View more issues


Never miss a beat

Sign Up Now

Subscribe now to get the latest news delivered right to your inbox.


© 2020 San Antonio Current

Website powered by Foundation