The majority of taxes brought in by a major short-term-rental company in Canada last year were tied to B.C. listings.
According to Airbnb, the company collected and remitted about $54 million in taxes in 2021. Of that total, approximately $40 million came from the West Coast.
Another $8 million was collected in Quebec, the company said in a news release. It did not provide a break-down of taxes collected in other provinces that make up the remaining $6 million.
"Tourism taxes are key revenue-generating mechanisms for jurisdictions across the country," Airbnb said.
"In recent years, these taxes have become even more important as cities and towns have looked to not only recover from the financial impact of the pandemic, but also embrace the opportunity of a fundamental shift in travel that has brought guests to thousands more communities around the world."
As for why so much of the money came from B.C., a key factor is likely the requirement of business licences or permits for owners in cities across the province, as well as an agreement between the province and the company itself.
In 2018, B.C. established an agreement with Airbnb to collect up to 11 per cent in taxes on short-term rentals. This amount includes an eight per cent sales tax, and a municipal and regional district tax that varies, but is up to three per cent.
According to the provincial housing plan from that time, the goal of the tax system, which was the first of its kind in B.C., was to "ensure tax fairness" by levelling the playing field between internet- and app-based companies like Airbnb and more traditional providers of short-term accommodations, like hotels and motels.
Additionally, rules were put in place in some cities including Vancouver to ensure that housing was primarily reserved for residents of the city.
