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Short-Term Rentals and Airbnb

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Short-Term Rentals and Airbnb

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Short-Term Rentals and Airbnb

  1. 1. AIRBNB & SHORT-TERM RENTALS AUGUST 8, 2019
  2. 2. HOME SHARING RENTAL MODEL  Primary providers  Airbnb  Founded in 2008, operates in nearly 100,000 cities across 191 countries; 6+ million places to stay  Maintains “Voluntary Collection Agreements” (VCAs) with 43 US states and approximately 400 local entities  Expedia Group: owns HomeAway, VRBO, VacationRentals, and others  Collection of Hotel Occupancy Taxes  State of Texas:  Airbnb VCA, 5/1/2017  HomeAway agreement, 4/1/2019  Cities in Texas:  Plano, 5/1/2019  Houston, 7/1/2019
  3. 3. VOLUNTARY COLLECTION AGREEMENTS  Authorizes Airbnb to collect and remit taxes on behalf of hosts  Erodes some local control  Forfeit auditing powers  No personally identifiable information of hosts (e.g., addresses or names of taxpayers)  Aggregate of gross and taxable receipts  Cities could require registration from hosts, however  Prohibits cities from attempting to collect back taxes  HomeAway agreement similar in scope
  4. 4. VOLUNTARY COLLECTION AGREEMENTS  Provides mechanism for tax collection  May violate:  Zoning and Use ordinances  Occupancy standards  Building and fire codes  Non-local operators  Lack the data for proper enforcement  Threat of transition from “home sharing” to commercial-style operation
  5. 5. IMPACT IN COLLEGE STATION  Tax collection  City levies 7% HOT where cost of occupancy is $2 or more per day for stays less than 30 days  Requires every operator to collect and report to City the applicable tax  In addition to hotels, City collects approximately $50,000 annually from registered B&B’s  Airbnb estimates Brazos County bookings during 2018 football season resulted in $963,000 in host income through 8,500 guest arrivals  Regulation  Currently short-term rentals only allowed in a single-family neighborhood if operating as a B&B  Homeowner Associations through deed restrictions  Enforcement  Resources to achieve compliance
  6. 6. ADDRESSING THE QUESTION OF SHORT-TERM RENTALS  Opportunities  Access this growing market  Untapped revenue stream for additional HOT  Review existing UDO  Create a more level playing field from a HOT perspective  Allows for agreements with Airbnb and HomeAway, which would collect and remit HOT taxes to City  Concerns about major commercial STR enterprises in College Station likely not as significant as other cities  Challenges  Cost/benefit of revenue collected: actual dollars vs. requirements of effective enforcement  Perceived favoritism to certain lodging operators  Indirect effects of intermittent stays  Limited information from providers regarding stays (e.g., Airbnb)  Impact on affordable housing
  7. 7. DIRECTION MOVING FORWARD  Research and benchmarking  Maintain current ordinances and enforcement  Review UDO  Changes would ultimately involve 2 public hearings, P&Z, and Council input  Consideration of agreements with home sharing providers

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