Airbnb tax comes to Sudbury rentals

The short-term lodging rental company Airbnb has finalized tax agreements with Ontario municipalities, including Greater Sudbury.

As of October 1, Airbnb will collect and remit the 4 per cent municipal accommodation tax on people who rent out their homes or apartments for short-term stays.

In Sudbury, the money collected by Airbnb will then be returned to the city, half of which will be used to promote tourism. The other half will be used for programs and services.

Alex Dagg, the director of public policy for Airbnb in Canada, looks at the new tax as an opportunity to give back.

"We now have more than 500 agreements worldwide collecting taxes like this,so we think it's important to be part of these systems and contribute to the communities we're operating in," Dagg said.

Dagg said Sudbury has a "healthy and vibrant" home sharing community, estimating the number of homes at about100. They take in an average of $7,600 annually for renting out their places, she said.

How it works.

"We engineer it on the back end of our system," Dagg said. "If someone books an Airbnb in Sudbury, when they do their checkout there will be a line item that says '4 percent municipal accommodation tax' which they will pay."

"We collect it seamlessly and remit it quarterly to Sudbury all the collections over time," she added.

"It's seamless for our host community, and pretty seamless for Sudbury," Dagg said. "Because we send them one check quarterly."

Dagg said the company is expecting other communities to follow suit

"We're assuming that some other communities might come forth and say 'hey, we should do this, too.'" Dagg said.

Click on the audio clip below to hear the full interview on Up North.