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Lodging App Becomes Tax Collector

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Last summer we wrote about how the lodging app AirBNB was close to having its transactions subject to Allegheny County’s hotel occupancy tax.  That happened earlier this year. 

While last year the app had agreements with a few local governments, a new article says that it has expanded to states (they levy occupancy taxes too) and other local governments and now those agreements are being used as a sweetener to entice localities to allow the business to operate in various jurisdictions.

Of course, while the company is addressing the U.S. Conference of Mayors this month,  the local collection method in Pennsylvania leaves the levying of hotel taxes at the county level, and the beneficiaries of the tax are largely tourism-related rather than general operations.

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Allegheny Institute
Allegheny Institute

The Allegheny Institute is a non-profit research and education organization. Our mission is to defend the interests of taxpayers, citizens and businesses against an increasingly burdensome and intrusive government.

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