Politics & Government

Airbnb To Levy Occupancy Tax In Houston

Home-rental company has entered an agreement with state of Texas, will collect 6 percent from guests.

Beginning on May 1, guests who stay in an Airbnb accommodation will be charged a 6 percent occupancy tax, the result of an agreement between the site and the government of Texas. This is a statewide deal, and was announced by Airbnb on Wednesday.

“The sharing economy plays an important role in our state’s overall fiscal health,” Texas Comptroller Glenn Hegar said in a statement. “Airbnb is taking a true leadership role by setting an example and acting as a responsible partner with the state of Texas as our dynamic economy continues to evolve.”

There are about 26,000 Airbnb hosts in Texas, according to the company, and a typical host takes in $4,800 a year.

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Airdna, which tracks Airbnb data, reported that the Houston area has more than 3,700 listings on the company's site. The Houston Business Journal reported that Airdna's records indicated that Houston-area Airbnb rates average $50 a night for a private room and $331 a night for a four-bedroom home.

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Airbnb has been involved in disputes with cities and jurisdictions around the world over matters including loading taxes and regulations, and hotel associations and co-op boards have long lobbied for the company to be regulated.

Airbnb officials said the agreement would allow Texas to benefit and help hosts comply with all state laws.

"Agreements like this allow communities to rightfully benefit from the economic impact of home sharing while also making it easier for Airbnb hosts, the vast majority of whom are middle class people sharing their own home, to comply with local tax laws," Laura Spanjian, the company's public policy manager for Texas, said in a statement. Airbnb is based in San Francisco.

The American Hotel and Lodging Association reported in 2015 that about 1,000 Houston homeowners utilized Airbnb during the previous year to rent out a bedroom, bringing in $11.1 million in revenue that went untaxed.

A recent search on Airbnb found an east downtown room for rent for $49 a night, and a bungalow in the Heights for $5,500 a night, quite a range.

Do you use Airbnb either as a landlord or a renter? Tell us about your experiences in the comments section.

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— Image: Airbnb

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