BENTONVILLE -- Airbnb will begin collecting and remitting the 2 percent lodging tax on bookings in the city beginning Sept. 1.
Airbnb will include the tax on guest bills and remit that money to the city, according to a news release. Hot Springs is the only other city in Arkansas to have a similar agreement with Airbnb, according to the company's website.
By the numbers
There were 3,000 guest arrivals in Airbnb listings in Bentonville last year. To date, there have been more than 200 million around the world.
Source: Staff report
Visit Bentonville uses that tax, along with a 1 percent tax on restaurants and prepared food, to support events and amenities that show promise of bringing tourism dollars into the city.
"By voluntarily collecting these taxes, Airbnb makes it easier for our hosts to comply with local tax laws and lightens the administrative burden for the government," Laura Spanjian, Airbnb public policy manager, said in a news release. "[It's] a win-win for everyone."
The company, founded in 2008, allows property owners to list space available to rent while allowing owners to monetize their extra space. It operates in 65,000 cities and 191 countries, according to its website.
Airbnb has guidelines on taxes for its hosts on its website and expects "all hosts to familiarize themselves with and follow their local laws and regulations," however, officials say it's tough to enforce and many hosts are not likely paying the required taxes.
A Bentonville Airbnb host is supposed to pay the 6.5 percent Arkansas sales tax, 2 percent state tourism tax, 1 percent Benton County tax, 2 percent city sales tax and 2 percent hotel tax. That adds up to 13.5 percent of earnings.
Collecting and remitting hotel and tourist taxes throughout the world was part of Airbnb's Community Compact, which outlined a "series of commitments to ensure home sharing strengthens communities," Laura Rillos, a company spokeswoman, said in a email.
Its first agreement was with Portland, Ore., in 2014.
It began collecting and remitting the Arkansas sales and tourism taxes as well as local sales taxes Feb. 1 and the 3 percent advertising and promotions tax in Hot Springs on June 1, according to Rillos.
"Visit Bentonville reached out to us this spring, and we are proud to partner with them," Rillos wrote.
Kalene Griffith, Visit Bentonville president and CEO, said some, but not all, Airbnb owners in Bentonville have been paying the hotel tax. Those who do are promoted on Visit Bentonville's website, she said.
This is an opportunity to promote other hosts as well as collect additional money to help the city continue to become a tourist destination, Griffith said.
Griffith said she's not sure how much tax has gone uncollected but will have a good idea after the September taxes are collected.
There are about 70 listings in Bentonville, according to Rillos.
Daniel Hintz, Airbnb host in Bentonville, said it will be a convenience for Airbnb to take over the collecting and remitting of taxes.
Hintz has operated a one-bedroom apartment Airbnb rental for about a year and paid the lodging tax.
"That's just part of knowing your business -- is just understanding what the rules and regulations are," he said.
The tax goes to a worthy cause -- Visit Bentonville's work in making the city a destination -- which in turn helps not only promote Hintz's Airbnb, but also invests in other tourist and quality of life amenities that increase the value of hospitality options, Hintz said.
"The more cool stuff they [Visit Bentonville] do, the more people who want to come to Bentonville," he said. "The more people who want to come to Bentonville, the more they want to stay in great places like 21c or a great Airbnb. It's about choice. And that's really what this is all about."
Bentonville joins more than 310 jurisdictions globally where Airbnb has collected and remitted more than $300 million in hotel and tourist taxes, according to the news release.
Fayetteville doesn't currently collect the tax, but officials have been in contact with Bentonville officials about how to do it, said Paul Becker, Fayetteville chief financial officer.
"We're pursuing it," he said. "This would be a major help in the enforcement of those taxes."
Visit Rogers and the Advertising and Promotions Commission in Springdale may look at the option in the future, but it's not a top priority right now, officials from both entities said.
NW News on 08/26/2017