In the new year, Airbnb rentals in the Waterloo Region in Ontario will include an additional tax to support local tourism initiatives.
Airbnb has agreed to collect a four percent municipal accommodation tax for hosts who offer short-term rentals. The tax is effective January 1st, and is meant to support tourism initiatives and attract visitors to the area.
“In the past year as of July to July our hosts in that region earned $6.5 million so it’s not nothing,” Alex Dagg, the director of Public Policy in Canada told the CBC. “So it will really generate a significant amount of extra tourism promotion dollars to the region which they’re not collecting right now.”
There are currently 1250 Airbnb hosts who list their homes, apartments and rooms for short-term rentals in the Waterloo Region.
Minto Schneider, the CEO of Waterloo Regional Tourism said the tax creates a level playing field with hotels and motels in the area.
“We were fortunate enough to have Airbnb agree with us…and they’ve agreed to help us collect the four percent tax as well,” he told the CBC.