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

Harrison art exhibit features portraits of female strength, power

Ranger Station Art Gallery puts Angela Burdon’s portrait work on display

Fire ignites along Highway 7 between Hope and Agassiz

Nine volunteers doused the flames with what they had before fire crews arrived

Agassiz Harrison school trustee candidates talk SOGI, spending and more

Final all-candidates meeting sees trustee-hopefuls taking the hot seat

Canada Post supports popular literacy program in Agassiz, Seabird Island

Community foundation awards grant to Story time in the Park

One of Chilliwack’s oldest clubs, Toastmasters, hosts an open public speaking event this month

An open house will take place on Oct. 24 at the Mt. Cheam Lions Club Hall at 7:15 p.m.

B.C. NDP retreats again on empty-home tax for urban areas

Rate reduced for all Canadians, dissident mayors to get annual meeting

Man killed in shooting at Abbotsford bank

Police believe incident on Thursday night to be targeted

Jets score 3 late goals to beat Canucks 4-1

Winnipeg ends three-game Vancouver win streak

Two B.C. cannabis dispensaries raided on legalization day

Port Alberni dispensaries ticketed for “unlawful sale” of cannabis

Canada not sending anyone to Saudi business summit

Sources insist Ottawa never intended to dispatch a delegation this time around

VPD ordered to co-operate with B.C. police watchdog probe

According to the IIO, a court is ordering Vancouver police to co-operate with an investigation into a fatal shooting

Earthquake early-warning sensors installed off coast of B.C.

The first-of-its kind warning sensors are developed by Ocean Networks Canada

B.C. woman looks to reduce stigma surrounding weed-smoking moms

Shannon Chiarenza, a Vancouver mom of two, started weedmama.ca to act as a guide for newcomers to legal cannabis, specifically mothers

B.C. teen gives away tickets to Ellen Degeneres show, plans O Canada welcome

The Grade 9 student wanted to give away tickets in the spirit of inclusivity

Most Read