OKC considers taxes on short-term rentals in private homes

An increasing number of visitors to Oklahoma City are reserving rooms in private residences, according to the online service that connects those guests with homeowners.

Seen one way, travelers enjoy cozy accommodations while “hosts” collect a few extra bucks.

From the city’s perspective, though, travelers are evading taxes while ordinances intended to protect neighborhood peace and tranquility are ignored.

Airbnb.com said in a news release this week that Oklahoma City is the state’s busiest market for its online overnight-stay bookings.

Residents using the site rented accommodations to 11,000 guests for short-term stays in Oklahoma City in 2016, the California-based company said.

But managing residential property for overnight accommodations — that is, like a hotel or motel — without a permit violates city ordinances.

Assistant City Manager Laura Johnson told the city council in 2015 that Oklahoma City requires a public hearing and a $2,700 permit before permission is granted to rent rooms.

Johnson said at the time that neighborhood opposition to Airbnb was growing.

While no direct link to Airbnb was drawn, a report to the city council this week said hotelmotel tax collections, hotel occupancy and room rates all are down in Oklahoma City.

The report said hotelmotel tax collections were down $418,000, or 5.5 percent, through the second quarter of the fiscal year, in part because some hotels were late with payments.

Occupancy rates were down 2.7 percent and room rates were down 1.4 percent.

Johnson said Thursday that the city had received no permit applications from Airbnb “hosts.”

She said the city treasurer’s office “continues to monitor the Airbnb site and, when possible, send information letters to the hosts that are in the city.”

Johnson said hotelmotel tax is due when an Airbnb host is renting two or more bedrooms.

Johnson said the treasurer’s office is working on an agreement with Airbnb to collect hotelmotel tax from hosts and remit it in one monthly payment to the city.