The American Hotel & Lodging Association is raising
concerns about the amount of Airbnb revenue that comes from commercial
operators in Phoenix, and they're doing it at a time when the Arizona state
legislature is considering a bill that would ban cities from banning Airbnb.
"Our industry thrives on a legal and level playing
field where everyone plays by the same set of rules designed to ensure the
safety of our guests and communities," AH&LA president and CEO
Katherine Lugar said on a press call. "With the rise of the short-term
rental market, the rules of the road are no longer the same."
According to an analysis conducted by Pennsylvania State
University’s School of Hospitality Management, 85 percent of operators in the
Phoenix metropolitan area listed a unit for a total of 30 days or more between
October 2014 and September 2015. That same group accounted for more than $41
million dollars in revenue for Airbnb. Multi-unit operators accounted for 14
percent of Phoenix-area hosts, yet they drove 40 percent of Airbnb's revenue in
the region, more than $17 million.
Wednesday's release is part of AH&LA's deeper dive into
data unveiled
in January. The report, “From Air Mattresses to Unregulated Business: An
Analysis of the Other Side of Airbnb,” examined 12 major U.S. cities and found
that long-term or commercial operators in those markets generate a
disproportionate share of Airbnb’s revenue. But AH&LA's focus on Phoenix
comes as the Arizona House prepares to vote on Senate Bill 1350, which would remove
cities' ability to prohibit online lodging operators and would limit how local
municipalities can leverage taxes against those operators. Meanwhile, the bill would
enable companies like Airbnb to collect state taxes on behalf of those who are
renting out residences. The bill passed the Arizona Senate on March 8 in a 27-1
vote.
Airbnb's Tax Battle
The Penn State analysis found that if Airbnb operators in
the Phoenix area followed the same tax rubric as other local lodging
businesses, they would have owed municipal governments in the region more than
$5 million. Airbnb worked with Phoenix last year to begin collecting sales and
hotel tax on Airbnb reservations, but they're still not subject to all of the
same taxes that hotels and motels are, such as state and county-imposed taxes.
Collecting taxes from Airbnb guests and operators has been
an ongoing issue for the sharing economy company. In Airbnb's hometown, San
Francisco, Airbnb hosts have to apply for a business license and register with
the Office of Short-Term Rental since Feb. 1, 2015. According to the San Francisco Chronicle, those hosts
now will have to submit itemized lists to the city assessor's office of all “furniture,
appliances, supplies, equipment and fixtures” used in their rental properties
and outline the cost of each item and when it was purchased. Those items then will
be subject to a tax, similar to how other businesses are taxed on equipment.
Airbnb, for its part, launched a partnership
with H&R Block in January to "help Airbnb hosts file their tax returns
in the U.S. and pay income taxes on the money they earn sharing their space."