Airbnb Generated $24 Million In Tax Revenue For Texas
The State of Texas hauled in $24 million from Airbnb properties spread across the state in 2018. According to a press release from Airbnb, the tax money is a result of an agreement between the state and Airbnb in 2017.
In April 2017, Airbnb announced a tax agreement with the Texas Comptroller’s Office, authorizing the home sharing platform to automatically collect the 6% state hotel occupancy tax on behalf of its host community and remit the revenue directly to the state. That agreement took effect May 1, 2017, infusing a new revenue stream for the state to fully capitalize on more people visiting Texas and staying longer through home sharing.
The company previously announced that it had delivered $15.3 million in tax revenue to the State in the first year of the tax agreement, nearly doubling initial projections. The $24 million in revenue for the second year represents an increase of over 57%.
“This tax agreement has made it easier for our Texas host community to easily pay their fair share while delivering tens of millions in revenue to the state,” said Laura Spanjian, senior policy director for Airbnb. “We thank Comptroller Hager for his leadership and look forward to replicating this model with additional counties and cities throughout Texas.”
As more and more Texans and those traveling to Texas become familiar with Airbnb, there is no reason to think that $24 million won't grow in the future.