Airbnb to pay 2% city advertising & promotions tax in Bentonville starting Sept. 1

by Talk Business & Politics staff ([email protected]) 531 views 

Airbnb, which is becoming more popular in Arkansas, has partnered with the Bentonville’s Advertising and Promotion Commission and will start paying taxes there beginning Sept. 1, according to the Airbnb.

Guests staying in Bentonville Airbnb properties will be charged 2% city advertising and promotions tax on their Airbnb bill, and the company will then remit to the city the taxes collected, according to the release.

“We appreciate Airbnb for voluntarily choosing to collect authorized state and local taxes,” Bentonville Mayor Bob McCaslin said in the release. “This demonstrates Airbnb’s respect for the community and the governmental agencies who receive and utilize these tax dollars.”

Bentonville joins a list of more than 310 jurisdictions globally with similar agreements for Airbnb to pay hospitality taxes, according to the release.

The hospitality company on June 1 began collecting Hot Springs’ 3% lodging tax, per an agreement with the Advertising & Promotion Commission, according to Airbnb.

Airbnb on Feb. 1 began collecting the 6.5% Arkansas Gross Receipts Tax, the 2% state tourism tax and local sales and use taxes from its hosts.

Statewide, the 2% tourism tax generated about $16 million in revenue during 2016, up 4.4% compared to 2015. About 900 Airbnb hosts in Arkansas earned a collective $4 million in 2016.

There were 3,000 guest arrivals in Bentonville last year, and the typical host earns $4,100 a year, according to the release.

“Airbnb is proud to partner with the city of Bentonville to make it easier for our hosts and guests to pay their fair share of taxes,” Laura Spanjian, Airbnb public policy manager, said in the release. “By voluntarily collecting these taxes, Airbnb makes it easier for our hosts to comply with local tax laws, lightens the administrative burden for the government and ensures the city gets this meaningful revenue. This is a win-win for everyone.”