September 15, 2016

Tax Dept. announces agreement with Airbnb

MONTPELIER — The Vermont Department of Taxes announced Thursday an agreement with Airbnb to collect meals and rooms tax on payment for lodging offered by its hosts.

Vermont joins other states and the District of Columbia, as well as many other cities and counties where Airbnb has agreed to collect their occupancy taxes on behalf of the hosts.

Beginning Oct. 1, Airbnb will collect and remit taxes on the behalf of their hosts. This allows for a more streamlined booking process for the guests using Airbnb, and works to level the playing field with traditional hotels by ensuring hosts on Airbnb are collecting and remitting the taxes owed.

Additionally, hosts on Airbnb will not be responsible for any back taxes they have failed to collect.

In addition to the agreement with Airbnb, the Department of Taxes is offering a voluntary come-forward program for hosts on other platforms. Between now and Nov. 1, if a host comes forward to voluntarily register with the department to collect and remit meals and rooms tax going forward, they will not be liable for any back meals and rooms taxes owed.

The Department of Taxes is currently working toward reaching out to other platforms that offer short-term rental of property with hopes to enter into agreements with those platforms as well.

Taxpayers interested in registering with the Department of Taxes should contact the Business Tax Section at 828-2551.

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