Airbnb generates $11.5 million in tax revenue for Arizona in 2017
PHOENIX – Airbnb, an online marketplace and hospitality service, generated $11.5 million in tax revenue for the state of Arizona in its first year of partnership.
According to the Phoenix Business Journal, Airbnb started collecting and remitting the 5.5 percent Short Term Rental Accommodations Tax in January of 2017.
The short term accommodation allowed customers to avoid filing complete tax returns, maximizing tax revenue owed from home-sharing activities to both the state and local governments.
Along with Airbnb, those who were hosts to more than 646,000 guests earned a combined $94.9 million in 2017, according to the company.
“It’s exciting to see companies like Airbnb expand and continue to thrive in Arizona,” Arizona Gov. Doug Ducey said to the Journal.
“Airbnb’s presence in the state has sparked positive economic impacts and given tourists more options when planning their trips.”
Airbnb is an online marketplace that offers short or long-term rental properties catered to those looking for a vacation getaway or lodging options.
There are more than 10,000 hosts in Arizona offering their properties on the marketplace. The average host in the state earned $6,100 last year, but many tend to share the home they live in to earn extra money.
“Gov. Ducey sought to make Arizona a sharing economy leader so the state and Arizona residents can receive the full economic benefits of home sharing,” Airbnb Public Policy Director Laura Spanjian said to the Journal.
“We’re glad Airbnb can help welcome a growing number of visitors to Arizona, while generating new revenue for the state and meaningful extra income to help our hosts make ends meet.”