Airbnb tax won't change Victoria's plans to regulate short-term rentals, councillor says

Airbnb's agreement to collect taxes for the B.C. and municipal governments received measured praise on tourism-dependentVancouverIslandthis weekas the ubiquitous vacationrental booking service shed some of its black-market reputation.

VictoriaCoun. BenIsittstill opposes the presence of theonlinebookingservicein the Victoria rental market, but said the dealis a step forward.

However it won'tstop the city's plans to regulate the short-term vacation rental industry, he told On the Island host Gregor Craigie.

"Rather than have a completeregulatory vacuum, I think it is a good step that the province has moved forward with taxation of these companies,"Isittsaid, thoughhe would prefer to see vacation rentals booked through a local online service.

Minister of Finance Carole James announced the agreement Wednesday in Victoria. Itwill see Airbnbcollect 11 per cent in provincial sales tax and municipal tourism marketing levies. James saidthe move will help fund housing affordability initiatives in B.C.

Isittsaid Victoria is close to final approval of regulations that will permit residents to rent up to two rooms in their principal residence at any time as long as they live there, and entire living units ifthey're away on vacation or for work.

"I personally don't envision a major change in the regulatory direction our city's moving in," he said."The city's fee is not a tax. We're still determining the level it would be set at."

Thefeedback the city received was that the proposed annual licence fee of $2,400 for year-round commercial Airbnb vacation rentals was too high, Isitt said.

On the other hand, the proposedfee of about $150 a yearforhome sharing or occasionallyrenting a whole unitwas seen as more reasonable.

The fees will covercosts of enforcement and operating the short-term vacation rental licensing system.

Tourism Victoria CEO Paul Nurseycalled the Airbnbagreement with the B.C. government "a big step" towardfairness.

Short-term rentals here to stay

Nurseysaid short-term vacation rentals have proventhey have a placeinthe market.

Further measures that the tourism and hotel associations in B.C. would like to see are federalGSTcharged for short-term rentals and commercial property taxes for every short-term vacation rental that is afull-time commercial business.

"House sharing in your primary residence has never been a concern for us, provided that it's taxed and that it's accepted by the community," Nursey said.

"What we do object to is the large-scale commercial operators that are taking long-term housing and worker housing out of the market."

With files from CBC Radio One's On the Island and All Points West.