House committee accepts bill to enforce tax remittance from peer-to-peer rentals

by Benton Alexander Smith | Idaho Business Review

A house committee will consider a bill that makes it easier for the Idaho State Tax Commission to collect taxes from hosts who use platforms like Airbnb to rent their property.

Pam Eaton, president and CEO of the Idaho Lodging and Restaurant Association, brought the bill before the House Revenue and Taxation Committee Feb. 27 and the committee voted unanimously to schedule the bill for a full hearing.

The bill would require all peer-to-peer market places to register their hosts with the Idaho State Tax Commission to ensure taxes are being paid, said Randy Tilley, audit administrator with the Idaho State Tax Commission.

“This bill defines vacation and short-term rentals and ensures they are collecting and remitting all of the taxes they are supposed to – sales tax, the bed tax and local option and auditorium district taxes,” Eaton said. “Basically all the taxes that hotels collect and remit today.

“If you rent your home out today you actually owe all of these taxes and are supposed to be collecting and remitting them, but most people are not,” she said.

Airbnb started collecting Idaho’s sales tax, bed tax and the Greater Boise Auditorium District tax for its Idaho hosts in December and remitted $70,000 to the state in the first month, according to Airbnb.