Airbnb to collect tax on Spa City guests

Airbnb, the online vacation home rental service, has reached an agreement with the Hot Springs Advertising and Promotion Commission to voluntarily collect the 3 percent advertising and promotions tax on all eligible bookings, beginning on June 1.

With the agreement, Hot Springs will be able to capitalize on people visiting Hot Springs and staying longer through home sharing.

Guests will be charged the appropriate taxes on their bill and Airbnb will remit the revenue directly to Hot Springs. Guests will see the charge on their booking receipt.

Hosts in Hot Springs welcomed nearly 3,400 guest arrivals in 2016, representing more than 300 percent growth over 2015.

Earlier this year, Airbnb agreed with the state of Arkansas to collect state and local taxes on shortterm stays in the state.