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

B.C. freestyle skier wins gold

Cassie Sharpe of Comox shines in the halfpipe

Thrilling finish to 59th All Native Tournament

Kitamaat, Hydaburg, Port Simpson and Kitkatla win championships in 2018 All Native Tournament

Day 6 from the All Native Basketball Tournament

Scores from Feb. 16 and finals matchups at the All Native Tournament in Prince Rupert, B.C.

Day 5 of the All Native Basketball Tournament

Scores from Feb. 15 at the All Native Tournament in Prince Rupert

Queen Charlotte voters test sewage plan ahead of Feb. 24 referendum

Comparing Martynuik Road site and Skidegate tie-in a key issue at council Q & A

REPLAY: B.C. this week in video

In case you missed it, here’s a look at replay-worthy highlights from across the province this week

How to keep local news visible in your Facebook feed

Facebook has changed the news feed to emphasize personal connections. You might see less news.

Virtue and Moir end ice dance careers with Olympic gold

Virtue and Moir’s gold medal win at the Olympics makes them the world’s most decorated figure skaters

Canadians find living in small spaces teaches creativity

Canadian families choosing to live in small spaces to bring closeness to children

SAR suspends search for missing man at Sun Peaks

RCMP will continue to search for a missing man near Kamloops but SAR has suspended their role

Lottery will help save children’s lives

Each ticket gets you a chance to win a lot of money, while helping a lot of kids

B.C. RCMP officer officially cleared in car wash shooting incident

A report found the Salmon Arm officer fired 14 bullets at the man’s truck

Interest in Canadian Armed Forces remains high

Canada seeks about 5,000 recruits each year for its regular forces of about 68,000

Rules reviewed to keep drug money out of B.C. real estate

Investigator looking at loans as well as casinos, David Eby says

Most Read