Airbnb will begin collecting taxes on behalf of its hosts in Idaho beginning December 1, 2016.
Sales of temporary lodging lasting 30 days or less are subject to taxation in Idaho. Airbnb voluntarily entered an agreement with the Idaho State Tax Commission to collect and remit taxes on behalf of its hosts who use the service to list Idaho properties for rent.
The company will collect Idaho sales tax, travel and convention tax, and the Greater Boise auditorium district tax. Under the agreement, hosts will not be obligated to collect the taxes and cannot opt-out of collection by Airbnb.
Under the agreement, hosts will still be responsible for collecting any other local sales or auditorium taxes on Airbnb sales. They were encouraged to contact local taxing jurisdictions for compliance obligations.
Hosts will also be responsible for collecting and remitting taxes on any rentals not sold through Airbnb.
According to Ryan, a professional tax services firm based in Dallas, Airbnb has simplified the tax issue by collecting the state tax from hosts and ensuring compliance with the state. It is unclear how the issue will be resolved in other jurisdictions.