Airbnb Delivered $300,000 in Tax Revenue to Memphis in Last Half of 2017
Airbnb, the world’s leading community-driven hospitality company, announced today that the company remitted more than $300,000 in tax revenue on behalf of its local hosts to Memphis in 2017.
In May 2017, Airbnb and the City of Memphis announced a historic tax agreement which authorized Airbnb to collect and remit local taxes on behalf of its Memphis host community. Specifically, the agreement pertained to the Memphis Short Term Room Occupancy Tax (3.5%) and Tourism Improvement District Assessment ($2 per bedroom per night).
The agreement took effect on June 1, 2017. Therefore, the $300,000 in revenue delivered to the city occurred in just seven months. In 2018, Airbnb anticipates delivering significantly more revenue to Memphis as a result of the agreement being in effect for a full year, as well as Airbnb’s continued growth in the city. Airbnb guest arrivals to Memphis increased by 79% in 2017, in parallel to continued growth among Memphis hotels.
At the time of the Memphis tax announcement last year, Mayor Strickland commented that, “It’s important to our administration that government be able to work seamlessly with businesses and residents, and this agreement is evidence of that. The economic impact of Airbnb speaks for itself, and I’m glad that so many people from out of town are experiencing the warm hospitality for which Memphians are well known.”
Airbnb has partnered with hundreds of governments throughout the world to collect and remit taxes, but Memphis marked the company’s first tax agreement within Tennessee. The agreement began a trend, as Airbnb announced an agreement in January with the State of Tennessee to collect and remit state and local sales taxes on behalf of all Tennessee hosts, including in Memphis. That agreement will take effect on March 1. Additionally, Airbnb is currently engaged in productive conversations with both Hamilton County (Chattanooga) and Knoxville regarding prospective agreements to collect and remit their respective occupancy taxes.