Tax Development Nov 28, 2016
In Idaho, sales of temporary lodging lasting 30 days or less are subject to taxation. Beginning December 1, 2016, Airbnb will begin collecting taxes on behalf of its hosts who use the service to list Idaho properties for rent. Per the agreement, which Airbnb voluntarily entered into with the Idaho State Tax Commission, Airbnb will be responsible for collecting and remitting Idaho sales tax, travel and convention tax, and the Greater Boise auditorium district tax. Under this agreement, the obligation to collect and remit these taxes rests with Airbnb and is not transferable to the host. Hosts will no longer be obligated to collect the above taxes and, furthermore, cannot opt-out of collection by Airbnb.
Hosts remain responsible for collecting any other local sales or auditorium taxes on Airbnb sales and should contact local taxing jurisdictions for compliance obligations. They also remain responsible for collecting and remitting taxes on any rentals not sold through Airbnb. Furthermore, they should continue collecting Idaho sales tax, travel and convention tax, and the Greater Boise auditorium district tax until such responsibility transfers to Airbnb on December 1, 2016.
This is a very interesting way for Airbnb to handle state sales and hotel taxes. Airbnb has essentially simplified the tax issue by collecting the state tax from the hosts and ensuring compliance with the state. It remains to be seen how this issue will be resolved in other jurisdictions.