Monday, April 22, 2019

Airbnb Nearly Doubles Tax Projections in First Year

Posted By on Mon, Apr 22, 2019 at 10:19 AM

click to enlarge AIRBNB/FACEBOOK
  • Airbnb/Facebook

Airbnb said Monday it has nearly doubled the expected tax revenues for Tennessee in its first full year here.

Airbnb, the home-sharing tech company, announced an agreement with the Tennessee Department of Revenue in January 2018. The agreement allowed Airbnb to collect and remit taxes to the state and local governments.

When the agreement took effect in March 2018, the company projected it would bring $13 million in annual revenue for the state. Airbnb announced Monday it brought in a total of $22.4 million to state coffers.

“This tax agreement is allowing our hosts and platform to deliver revenue and economic activity to rural parts of Tennessee that lack traditional hospitality options,” said Laura Spanjian, Airbnb’s senior policy director. “We hope to build on this economic impact in year two.”

Airbnb also has agreements with Memphis, Knoxville, and Hamilton County (Chattanooga), to collect and remit local occupancy taxes for their hosts.

In 2018, Airbnb hosts in Tennessee welcomed more than 1.4 million guests.

Airbnb claims its service has complemented, rather than competed with, Tennessee’s hotel industry. A news release from the company said Airbnb expands lodging capacity in cities during large events, like college football in Knoxville, the Tri-Cities area during NASCAR events, and the Memphis in May festival season.

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