Since reaching its tax agreement with Vermont two years ago, Airbnb has remitted more than $7.8 million in taxes.
Airbnb automatically collects and remits this tax, providing a significant boost to state coffers while making the process seamless for individuals and families who share their home to make ends meet.
Under Airbnb’s tax agreement, which went into effect on Oct.1, 2016, the company has collected and remitted Vermont’s 9 percent Meals and Room Tax on behalf of its host community, along with a local 1 percent Meals and Rooms Tax in the following municipalities: Brandon, Brattleboro, Colchester, Dover, Killington, Manchester, Middlebury, Montpelier, Rutland Town, St. Albans Town, South Burlington, Stowe, Stratton, Williston, Wilmington, Winhall, and Woodstock.
This has generated approximately $7.7 million in tax revenue over the past two years.
In addition, Airbnb also collects and remits Burlington’s 2 percent Restaurant, Hotel, Amusements and Admissions Tax. Since reaching an agreement with Burlington in January 2017, Airbnb has generated $142,000 in tax revenue in Burlington alone.
“Airbnb is an economic mobilizer for everyone, from families sharing their home to make ends meet, to the small businesses benefitting from more guests shopping and eating locally – and even to the state of Vermont, which has used these millions of dollars in additional revenue to support public services statewide,” said Josh Meltzer, head of Northeast public policy for Airbnb.
As of Oct. 1, 2018, there are 4,500 active hosts across Vermont, who welcomed 281,500 guests over the past year. The typical Vermont host made $6,400 per year, from opening their doors approximately two days per month.
Demographically: 64 percent of Vermont hosts are women; 28 percent are seniors; and 84 percent share their home in areas designated as rural by the US Census. Airbnb is also growing across Vermont, with guest arrivals increasing by approximately 55 percent year over year.
Airbnb’s agreement with Vermont is one of the more than 23,000 tax partnerships the company has fostered globally, generating more than half a billion dollars to support core public services.