Jackson Jambalaya

Hi _______,

Great news! If you have a listing in Mississippi State, Airbnb will start remitting the following tax(es) for all reservations booked on or after October 01, 2017:

Guests will see a separate line item for the tax(es) when booking. Airbnb will collect and pay the tax(es) to the jurisdiction at the next filing due date.

To learn more, please visit our Help Center or contact your tax collector for more details.

Thanks,
The Airbnb Team

Note: Under the Airbnb Terms of Service, you instruct and authorize Airbnb to collect and remit Occupancy Taxes on your behalf in jurisdictions where Airbnb decides to facilitate such collection. If you believe applicable laws exempt you from collecting a tax that Airbnb collects and remits on your behalf, you have agreed that, by accepting a reservation request, you are waiving that exemption. If you don’t want to waive an exemption you believe exists, you should not accept the reservation.

 Kingfish note: It appears the taxman came for Airbnb.  Quite  a few people have protested the Department of Revenue's decision to collect tax from Airbnb.   Compare the typical Airbnb landlord to your friendly shade-tree mechanic.  Most people know such a mechanic.  If you need a tune-up or your brakes replaced, you hire the shade-tree, he fixes your car, you pay him cash, and everyone is happy.  You save on what you would pay a shop and he makes more than he would at a shop.  Such service has always taken place and always will.  Good luck trying to enforce the tax laws on the shade-trees.

However, suppose Mr. Shady Tree starts listing his services on Craig's List.  He promotes his services on Facebook.  Instead of working on the cars of personal friends and their referrals, he is now holding his professional services out to the public and actively promoting them.  Car Care Clinic must pay taxes on its revenue.  When does Shady Tree cross the line? JJ would argue that line is crossed when he begins promoting his service for hire to the general public. &nbsp

The typical Airbnb is no different.   People are going to rent rooms on the side for extra money.  There is no way to police and tax those who do so under the radar.  However, Airbnb is now directly competing with hotels.   Landlords using Airbnb perhaps shouldn't face the same regulations but  should they get an unfair advantage on pricing?   The Airbnb landlord is actively marketing his property to the public for short-term rentals - in effect, directly competing with hotels.  Why should the landlord get an exemption from paying taxes when he is marketing his property for rental to the public?  Such listings are different from free websites such as Craigslist.  Airbnb is collecting its cut and promoting the listings.  It is also expanding its business.

 Airbnb is now going after the luxury hotel business. Bloomberg reported in July:&nbsp

Airbnb Inc. is planning to launch a new rental service for mega-homes, mansions and penthouses that will be inspected to ensure they pass muster.

The company will start testing the new offering in some markets at the end of year, according to people familiar with the matter. If the tests are successful, the San Francisco-based company will roll out the service broadly, the people said. Airbnb declined to comment

Looking to appeal to well-heeled travelers, Airbnb has been segmenting its offerings much the way hotel chains do. The company has already started testing a tier called Airbnb Select, which requires hosts to maintain consistent standards for their lodgings. Just like you can walk into any hotel and expect a consistent set of towels, blankets, and quality, Airbnb Select is designed to do the same. Those homes must also be inspected.

 The new tier is fancier -- penthouses versus apartments, mansions versus family homes. It’s known internally as “Airbnb Lux,” but an official name has yet to be determined, said the people, who requested anonymity to discuss a private matter. Its creation follows Airbnb’s acquisition earlier this year of Luxury Retreats, a Canadian company that before its sale listed more than 4,000 villas and vacation homes. Those listings are not yet featured as a separate section on Airbnb’s website.

A luxury tier of rentals represents a lucrative revenue source for Airbnb. The company takes a percentage of the cost of each booking it brokers, so more-expensive inventory would generate higher margins and help justify the privately held company’s $31 billion valuation.

Pushing high-end rentals also enables Airbnb to target the sort of clientele willing to pay for its more expensive tourism services. In November, the company began offering truffle tastings, mushroom hunting and guided tours provided by local experts. Airbnb is looking to expand into other parts of the travel business and is working on a flight-booking tool..... Rest of article.

JJ supports Airbnb when it comes to fighting local governments that seek to restrict its use. Airbnb helps tourism and money provides cheaper rooms for customers. Money that would have been wasted on paying higher prices at hotels can instead be spent on other things during their visit. However, if the landlords are going to market  their services and compete directly with hotels, then they should be taxed as hotels.