Minister of Municipal Affairs and Housing, Selina Robinson, is joined by Finance Minister Carole James and Alex Dagg, public policy manager for Airbnb Canada for an announcement at the B.C. Legislature Feb. 7, that the short-term rental provider will now pay sales tax to the province. Kristyn Anthony/VICTORIA NEWS

Airbnb to collect provincial sales tax in B.C.

The company will begin gathering 8 per cent PST and the up-to-3 percent MRDT

Airbnb will now pay provincial sales tax to the B.C. government.

B.C. Finance Minister Carole James made the announcement in Victoria on Wednesday, saying the government had been looking at new tax models that will help with tax fairness.

“This is about a fair playing field, especially in the hospitality industry,” she said.

RELATED: Airbnb on the rise in Kelowna

Airbnb will begin collecting the 8 per cent PST and the up-to-3 per cent municipal and regional district tax (MRDT) generated through short-term accommodations provided within the province.

To streamline this process, Airbnb will remit on behalf of its hosts in B.C., ensuring no additional administrative burden is placed on them.

Many municipalities already regulate short-term rentals and the province says this tax will assist municipalities on other levels. Money collected by this tax will help fund affordable housing in the province as well as provide tax fairness for the hospitality industry.

RELATED: Vancouver wants to license Airbnb hosts

James said with Airbnb becoming involved with a sharing agreement it will push other short-term rental companies to do the same.

“This is a defining moment for Airbnb in British Columbia,” said Alex Dagg, public policy manager for Airbnb in Canada. “These changes are a welcome opportunity to continue helping the province and its residents benefit from the positive economic impacts of home sharing.”

According to the B.C. government, if Airbnb contributed to this tax in 2017 they would have collected about $18 million.

Airbnb first began remitting taxes in Portland and is looking to do so in other areas where there are short-term rentals.

Besides contributing to affordable housing this tax will also go towards promoting local tourism.

Like us on Facebook and follow us on Twitter.

Just Posted

Nearly 1,500 heavy equipment items and trucks at Chilliwack auction

Massive sale of used work machinery at Ritchie Bros. auctioneers on May 30

Giant brewing tanks make landfall in Chilliwack

Road closures coming as tanks continue journey to Molson Coors site.

UPDATE: One dead, two in hospital after Highway 1 crash near Bridal Falls

Closure expected to last hours, while drivers are told to take detours

RCMP renew call for info on girl who went missing 35 years ago

Plea sparked by National Missing Child Day

VIDEO: BC EggFest returns to Chilliwack, doubles attendance

Celebrities and axe throwing added to a day of eating barbecued food

Wildfire sparked north of Merritt, estimated 8 hectares

BC Wildfire Service is responding to the fire near Chattaway Lake FSR 27 kilometres north of Merritt

Heavy police presence after reported shooting in Richmond

Reports say a man was hit while riding a motorcycle

B.C. to spend $181M to create 200 general practitioner jobs

Jobs will go to new medical school graduates

Federal leaders trade barbs about India trip at press gallery dinner

Justin Trudeau’s infamous trip to India earlier this year was the focus of many of the jabs

Most Read