Leon County will now begin collecting tourism development taxes when local homeowners rent out their houses using Airbnb.
Homeowners will be responsible for collecting and remitting the same bed tax charged by hotels.
The tax is not a new tax, said Chairman of the Leon County Commission John Dailey. But, because technology sometimes moves at a faster rate than the government, he said the county is now applying the rules to Airbnb users.
Dailey believes it’s a “win-win” for everyone involved.
“I think it’s a great example of the county government working with private industry, new industry, making sure that we are creating opportunities for people to make money in Leon County and to run businesses,” he said.
“But at the same time, the county is able to collect the appropriate taxes associated with that industry and reinvest them in the community.”
The deal makes Leon the 39th Florida county where Airbnb collects tourist development taxes on behalf of the local entity.
Dailey said the deal “is a great commitment to our community and we are pleased that we were able to get to this point.”
About 280 Leon County residents share their homes through Airbnb, inviting 10,000 guests to the area, the company said in a news release.
Residents and Airbnb will not have to pay past tax payments, but will begin paying for the 2017-2018 budget cycle.
The typical Tallahassee host earns about $3,400 annually via Airbnb. It’s estimated the home sharing service will bring in $46,000 annually in tax revenue, which will be invested back into the community.
Dailey said the money goes towards the visitor’s bureau, marketing the community, and promoting tourism in the county.
“It supports a lot of the local and cultural festivals that we have that brings tourists into our community,” he said.
Dailey reports that Leon County hosts earned about $950,000 last year.