Nevada County Strikes Deal With Airbnb
Short-term rentals like Airbnb could end up becoming a windfall for jurisdictions worldwide. The latest beneficiary is Nevada County.
Airbnb has started collecting a 10% Transient Occupancy Tax (TOT) from hosts who use the service in unincorporated Nevada under an agreement that took effect May 1. The tax is passed on to guests who stay at the properties. It represents a more streamlined process than the one that existed before, in which responsibility for collecting TOTs fell on the hosts themselves. The hosts often failed to register and collect. Following up with them all was extremely difficult for the county.
“Nevada County is excited to partner with Airbnb for Transient Occupancy Tax collection. This agreement will streamline our processes, reduce workloads and create a working relationship that will benefit the County as well as our constituents,” said Tina Vernon, Nevada County Treasurer & Tax Collector.
“The vast majority of Airbnb hosts are middle class families who share their home and want to pay their fair share. We are excited to announce this partnership that will allow us to collect hotel taxes on behalf of hosts in the unincorporated areas of Nevada County. Our community of hosts are committed to being good neighbors and strengthening their city’s local economy,” said Marisa Moret, Public Policy Manager for Airbnb.
Airbnb has struck similar deals with 275 jurisdictions worldwide, including the City of Los Angeles. So far, the company has raised and dispersed some $240 million in hotel taxes.
Read more about the partnership here.