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

WATCH: Grand opening of the sxʷeŋxʷəŋ təŋəxʷ James Bay Branch Library

Community members speak to the namesakes of the newest GVPL addition

B.C. Ferries cancels Swartz Bay-Tsawwassen sailings over propulsion problem

11:00 ferry now good to go, but lines anticipated

WATCH: City approves Wharf, Humboldt Street bike lanes

Changing intersections, creating pedestrian plazas and more on the agenda

Meet the 2018 Tour de Rock team

Retired Spectrum principal among team introduced at Spectrum

Teen Victoria brothers receive award for saving family from house fire

Sam and Finn Parker kept cool when their home started to burn and got three people out

Trans Mountain pipeline: How we got here

A look at the Kinder Morgan expansion, decades in the making

VIDEO: Pipeline supporters rally across B.C.

Five simultaneous events organized by month-old Boots and Suits lobby group

VIDEO: B.C. woman praises burn fund after boat explosion in 1978

White Rock woman was 16 years old when she was left with second- and third-degree burns

B.C.’s Ryan Craig, Vegas Golden Knights chase history

Local product behind bench for expansion team’s incredible championship run

CP rail workers give strike notice

Employees could walk out as early as Tuesday at 7 p.m. PT

RCMP investigating after gunshots fired in Courtenay

Comox Valley RCMP officers are investigating after gunshots rang out in Courtenay… Continue reading

WATCH: Grand opening of the sxʷeŋxʷəŋ təŋəxʷ James Bay Branch Library

Community members speak to the namesakes of the newest GVPL addition

Juno winners MonkeyJunk play Saanich’s V Lounge June 2

Two-time Juno-winning Monkey Junk bring their ‘swamp’ R&B sound to Saanich’s V… Continue reading

Vancouver Island wife brings husband back to life with CPR, thanks to 911 dispatcher

‘The dispatcher literally taught me CPR over the phone’

Most Read