As the digital age has caused the decline of many business models – among the casualties: video stores, record stores, encyclopedias, and travel agencies, but for some reason not landline long-distance service – state and local governments have struggled not to die with their host organisms. Today we look at cities’ and counties’ ongoing efforts to keep pace with the lodging industry.
For several years now city and county taxing authorities have been looking to online travel companies (OTCs) as a potential source of expanded lodging tax revenue. To this end, these taxing authorities have sought to have their lodging taxes applied to the total amount customers pay to OTCs to rent rooms, rather than on the lower amount actually paid to the hotels by the OTCs. This has been a losing argument so far this year, with OTCs winning cases in Hawaii, Florida, and, just last week, North Dakota. You can read more about these developments in Michael Bologna’s recent article in Bloomberg BNA’s Daily Tax Report.
Compared to the OTC model, local governments have only recently begun to address the sharing economy lodging model popularized by Airbnb. Airbnb just began collecting occupancy tax in its home city of San Francisco in October. This followed the city’s passage last year of compromise legislation both legalizing short-term rentals of residential property and requiring that Airbnb and like businesses collect and remit the city’s occupancy tax. In a similar effort to capture revenue from this lodging model, and following a 2012 loss against Expedia, Philadelphia has enacted an ordinance permitting (but not requiring) booking agents such as Airbnb to collect the city’s occupancy tax on behalf of peer-to-peer hosts. Just in time for Pope Francis’s visit to the city this fall, the ordinance, effective July 1, also requires those booking agents that do not collect the tax to file quarterly information reports on hosts listing accommodations with them.
Take a free trial to Premier State Tax Library , a comprehensive research service that delivers deep, unique analysis, and time-saving practice tools to help practitioners make well-informed decisions.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)