PA Airbnb Hosts Neglecting To Collect Taxes: Lawmakers

HARRISBURG, PA — Airbnb hosts around Pennsylvania are neglecting to collect taxes, as they are legally required to do, sparking new proposed legislation and calls for a registry that would allow the online home rental portal to be more closely monitored.

Lawmakers say that some hosts are either not aware of their legal obligation to collect state and county hotel taxes, or they are ignoring it.

"This includes not only actual hotels but also individuals who offer their home or a room in their home for transient stays of less than 30 days," State Rep. Doyle Heffley, who announced the bill Wednesday, said in a co-sponsorship memorandum. "In cases like these, your home or room is considered a hotel for hotel tax purposes, so you have to collect the tax from patrons."

Airbnb did not immediately respond to a request from Patch for comment on the bill or the statement that hosts are failing to collect taxes. It's not yet clear how widespread the issue is in Pennsylvania.

Similar efforts at creating Airbnb registries are underway in New York City and elsewhere. Supporters say that it's creating a more level playing field, as Airbnb simply has to do what other hotels and bed and breakfasts have to do: register (and, of course, pay taxes). A Politico report earlier in December noted that New York City officials are concerned about Airbnb's effect on the "strained rental market" and how it's "been abused by operators who’ve used the platforms to run illegal hotels."

Haffley said it's the state's job to enforce the law. Moreover, supporters argue the bill will help ensure that conventional hotels and other bed and breakfasts who do obey the law and pay the tax are not put at an unfair competitive disadvantage.

His bill, which has been introduced in a different form in the past but did not move forward, would create a registry which all Airbnb hosts would be required to join. This would facilitate taxing authorities have the needed oversight and communication to ensure taxes were collected. Information would also be shared with the Pennsylvania Department of Revenue and county treasurers.