The majority of taxes paid by a major short-term rental company in Canada last year were related to listings in British Columbia.
According to Airbnb, the company collected and remitted about $54 million in taxes in 2021. Of that total, about $40 million came from the West Coast.
Another $8 million was raised in Quebec, the company said in a press release. He did not provide a breakdown of taxes collected in other provinces that make up the remaining $6 million.
“Tourism taxes are key revenue-generating mechanisms for jurisdictions across the country,” Airbnb said.
“In recent years, these taxes have become even more important as cities and towns have sought to not only recover from the financial impact of the pandemic, but also seize the opportunity of a fundamental shift in travel that has brought guests to thousands of other communities around the world.”
As to why so much of the money came from British Columbia, a key factor is likely the requirement for business licenses or permits for landlords in cities across the province, as well as an agreement between the province and the company itself.
In 2018, British Columbia entered into an agreement with Airbnb to collect up to 11% tax on short term rentals. This amount includes an eight percent sales tax and a municipal and regional district tax which varies but can be as high as three percent.
According to provincial housing plan of that timethe goal of the tax system, which was the first of its kind in British Columbia, was to “ensure tax fairness” by leveling the playing field between internet-based businesses and apps like Airbnb and more traditional providers of short-term accommodations, such as hotels and motels.
Additionally, rules were put in place in some cities, including Vancouver, to ensure that housing was primarily for residents of the city.
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