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

Students in Hope are ‘100 Days Smarter’

Coquihalla Elementary rang in 100 days of school in a concrete, yet creative manner

Chilliwack’s Chief Ernie Crey a firm pipeline supporter

Crey lauds NEB focus on marine safety in his role representing Indigenous oversight committee

Measles case confirmed within Fraser Health region

One case within Fraser Health is related to the outbreak in three Vancouver schools.

Harrison Festival to share the culture behind the music

Festival director Andy Hillhouse will be talking about nationalism in music, starting March 1

Risk of ‘deadly avalanches’ leads to warning for B.C.’s south coast

Weak layer of snow on Vancouver Island, Lower Mainland could trigger an avalanche

National Energy Board approves Trans Mountain pipeline again

Next step includes cabinet voting on the controversial expansion

Girl heard saying ‘Help my Dad’ in suspicious radio message on Vancouver Island

Police asking for help following mysterious signals from somewhere between Comox and Sayward

Reports of rashes prompt closure of all Harrison Hot Springs pools

Public pool available after Fraser Health shut down all five mineral pools until further notice

Man sentenced to 7 years for smuggling drugs and shooting at border guards in Sumas

Nathan Hall was arrested in Abbotsford in 2013 after day-long manhunt

No treatment for highly infectious measles, says doctor

10 cases of measles confirmed in Vancouver as of Friday

Two more measles cases confirmed in Vancouver

It brings the number of total cases within the city connected to the outbreak to ten

B.C. Special Olympics officially underway in Vernon

Athlete’s Oath: “Let me win. But if I cannot win, let me be brave in the attempt.”

Vancouver Aquarium wants your help to name a baby killer whale

The public helped name Springer’s first calf, Spirit, and is being asked to help with the second

Guards protest firing of fellow officers charged with assault at B.C. prison

Corrections officers demonstrated in Maple Ridge on Friday afternoon

Most Read