Airbnb Delivered $22.4 Million In Tennessee Tax Revenue In First Year Of Agreement

Tuesday, April 23, 2019

Airbnb, the world’s leading community-driven hospitality company, announced Monday the company delivered a combined $22.4 million in tax revenue to Tennessee in the first year of its statewide tax agreement, exceeding initial expectations.

Collecting and remitting lodging taxes can be complicated and it is for this reason Airbnb has worked with hundreds of governments throughout the world to collect and remit taxes, making the process seamless and easy for hosts while contributing revenue for local comptrollers and tax collectors, said officials.  

In January 2018, Airbnb announced an agreement with the Tennessee Department of Revenue authorizing the home sharing platform to collect and remit two taxes assessed by the state: 

Tennessee State Sales Tax (7 percent)

Local Sales Tax (1.5-2.75 percent depending on the local jurisdiction)

That agreement took effect on March 1, 2018, with initial expectations of $13 million in annual revenue for the state. The $22.4 million nearly doubled those expectations.

In addition to the agreement to collect state and local sales taxes, Airbnb has agreements with Memphis, Knoxville and Hamilton County to collect and remit their local occupancy taxes on behalf of hosts.

“This tax agreement is allowing our hosts and platform to deliver revenue and economic activity to rural parts of Tennessee that lack traditional hospitality options,” said Laura Spanjian, Airbnb’s senior policy director. “We hope to build on this economic impact in Year 2.”

This comes as Tennesseans increasingly embrace the home sharing platform as an opportunity to earn supplemental income and make ends meet. In 2018, local hosts welcomed over 1.4 million Airbnb guest arrivals to Tennessee.

The home sharing community provides value through expanded lodging capacity for Tennessee communities when hotels sell out during big events. These include Knoxville during big college football weekends and university events, the Tri-Cities during NASCAR races, and Memphis during the May festival season.

Statewide data indicates that Airbnb and its host community appear to be complementing -- rather than competing with -- the Tennessee hotel industry. The most recent report from the Marcus & Millichap demonstrates that Tennessee hotels continue to thrive, even as local hosts welcomed hundreds of thousands of guests. This suggests that Airbnb is opening up the state to a new slice of prospective tourists by catering to travelers less able to afford hotels, those who desire to stay in neighborhoods or cities that lack hotels, and families who prefer to be together under one roof, said officials.

 



A Dapper Duo: Tennessee Aquarium Hatches A Pair Of Fluffy, Healthy Penguin Chicks

New Outdoor Waterpark To Be Built In Sevierville

Eagle's Nest On Lookout Was Planned As Hanging Gardens


There are few things more likely to coax a smile from a Tennessee Aquarium employee than the hatching of a penguin chick. Except, of course, when two chicks waddle onto the scene at the same ... (click for more)

Wilderness Resorts and Waterparks ownership group on Monday announced that they will be building a new attraction in the Smoky Mountain region called Soaky Mountain Waterpark. The new massive ... (click for more)

There are still reminders on the lower slopes of Lookout Mountain of the planned "Hanging Gardens" that were to have transformed an old quarry into a majestic park. Milton Ochs, younger brother ... (click for more)


Travel

A Dapper Duo: Tennessee Aquarium Hatches A Pair Of Fluffy, Healthy Penguin Chicks

There are few things more likely to coax a smile from a Tennessee Aquarium employee than the hatching of a penguin chick. Except, of course, when two chicks waddle onto the scene at the same time. Looking like nothing so much as adorably pudgy, grey-and-white balls of feathery fluff, the Aquarium recently welcomed a pair of chicks — one Gentoo Penguin , one Macaroni Penguin ... (click for more)

New Outdoor Waterpark To Be Built In Sevierville

Wilderness Resorts and Waterparks ownership group on Monday announced that they will be building a new attraction in the Smoky Mountain region called Soaky Mountain Waterpark. The new massive 50-acre outdoor waterpark will be located across the street and up the hill from the Sevierville Convention Center and Wilderness at the Smokies Resort. An official ground breaking for VIPS ... (click for more)

Breaking News

Latest County School Budget Cuts Most Student Fees, Adds Literacy Aides; Across-The-Board Increase Stays At 2.5%

County School officials on Thursday presented a revised budget that eliminates most school fees and adds 10 literacy aides. The employee pay increase remains at 2.5 percent - short of the five percent that was included in the initial budget requiring a 34-cent property tax increase. That tax rise was rejected 5--4 by the County Commission. Board member Tucker Pennington put ... (click for more)

22-Year-Old Male Shows Up At Local Hospital Wednesday Night With Gunshot Wound

A 22-year-old male showed up at a local hospital with a gunshot wound around 11:19 p.m. Wednesday. Chattanooga Police responded to the hospital on a report of a male party who showed up with a gunshot wound. The person shot arrived via personal vehicle. CPD Officers were unable to locate a crime scene The injury is considered non-life-threatening per medical staff. ... (click for more)

Opinion

Opinion Correction: Erlanger Does Not Offer $20,000 Nurse Signing Bonuses

An opinion in Chattanoogan.com on Monday said Erlanger Health Systems had $20,000 nurse signing bonuses. Erlanger officials said that is another local hospital - not Erlanger. Columnist Roy Exum said, "In a story that I wrote on July 15, “A Nursing Shortage?” I mistakenly identified Erlanger Hospital as one hospital that offers prospective nurses a $20,000 signing bonus. ... (click for more)

Roy Exum: Use 'Tags' At Erlanger

When I was a senior in high school, the Vietnam catastrophe held the guys who were in my class spellbound. Back then, and has since been proven again and again, the conflict was a terrible error in our nation’s judgment and almost 60,000 young and promising Americans died in some stinking South Asian battle zone that didn’t mean squat to our freedom or our nation’s future. In ... (click for more)