Articles tagged “taxes”

Does this tax-collection agreement mean Airbnb is completely legal in Los Angeles? Not really. But if you're renting out your home as a short-term rental, the city wants to make sure it gets its cut of the business, even as it's revising its short-term rental laws.

Despite 88 filed lawsuits in the U.S. -- and now VAT issues in Europe -- the hotel occupancy tax issue has mostly been manageable for Expedia and the other online travel agencies. The sky indeed has not fallen.

The online travel agencies have lots of competitive advantages over hotels and the sales tax disparity is one of them.

Lobbying firm Dickstein Shapiro tells prospective clients: "State AGs are the new sheriffs in town. Do you know them? We do. Sophisticated lawyering. Unparalleled relationships." It all seems to have paid off in Florida.

If the alternative lodging sector is still in its early days, then it is reasonable to envision that the market for services that help property owners and managers decipher the complexities of local rental taxes will only grow. HomeAway's investment in HotSpot Tax should burnish a hoped-for image of a vacation rental site that wants to ensure compliance with local laws.

Once Airbnb figures out taxes, it may have a leg to stand on as it argues for a repeal of the laws that make two thirds of its NYC rentals illegal -- taxes or not. Then there are the leases, landlords, and condo boards to deal with.

Most travelers do not travel frequently enough to note changes in VAT taxes, but gradual increases over time lead to spiked rates that impact guests' perception of their ability to visit a particular place.

Despegar's statement doesn't say it will begin paying local taxes in Argentina -- or how much -- but its actions give Latin America's largest travel agency some breathing room to work out a settlement.

The attitude in Congress seems to be: Hey, lets solve the budget impasses by taxing travelers some more. After all, they aren't organized, and we can sneak these new taxes through. But if air travel is a stimulator of the economy, then Congress may be shooting itself in the foot.