AIRBNB WELCOMES MASS. HOTEL TAXES
Co.’s radio ads back Senate plan
Airbnb really wants to be taxed in an effort to legitimize its booming business.
That’s why the Silicon Valley darling with a penchant for disruption is spending millions of dollars on radio ads in Boston in favor of a state Senate proposal that would require Airbnb guests to pay state and local lodging taxes.
“Right now, there’s a bill before Beacon Hill that provides more revenue to the Commonwealth to fund important services like education and healthcare,” the ad says. “Here at Airbnb, we support it, because if Massachusetts families pay taxes, we should too.”
Airbnb is pushing a Senate proposal that would tax short-term rentals like hotels, passed as part of an economic development bill earlier this month. Crystal Davis, a spokeswoman for the company, said the ads will run through next week, and said Airbnb spent in the “mid-seven figures” for radio ad buys in the Boston market. Asked if the push for taxes is an attempt to avoid more onerous regulations — requirements including inspections and adhering to fire codes have been proposed — Davis said it is the right thing to do.
“It’s something we want to do, we would be on par with the hotel industry, and we don’t have any problem with it,” Davis said. “It’s nothing other than us wanting to collect and remit taxes.”
She said Airbnb collects taxes in 190 municipalities around the world.
In other parts of the country, Airbnb has gone toe to toe with cities, claiming regulations stifle innovation. Still, Airbnb would not be footing the bill. The taxes — like at hotels — are passed on to the guests.
State Sen. Michael Rodrigues, who led the effort in the Senate, said he knew Airbnb was OK with taxes, but did not expect an advertising blitz.
“I’m a little surprised they ran ads,” he said. “I think they want to be recognized as a legitimate part of the lodging economy, and in order for them to be considered a part of the lodging economy, they have to pay taxes.”
Gov. Charlie Baker initially said he supported the tax as a way to pay for an expansion of the Earned Income Tax Credit, but later backtracked, saying the tax would not cover the cost of the tax credit expansion and threatened small bed and breakfasts.
The Senate has estimated the tax could bring in as much as $20 million each year
Baker’s office reiterated his position again yesterday.
The bill is in conference committee as negotiators from each chamber try to reconcile differences between economic development bills in the few remaining days left in the legislative session.