SHARE
COPY LINK

AIRBNB

Airbnb hands over €1.2 million in tourist tax to Paris coffers

Airbnb handed over nearly €1.2 million to city authorities in the last quarter of 2015, the city hall said.

Airbnb hands over €1.2 million in tourist tax to Paris coffers
Photo: AFP

The home rental web platform Airbnb agreed to start charging users in Paris a tourist tax, after coming under fire from hotel chains last year. 

Airbnb reached an agreement with the Paris authorities last year and from October 2015 has charged users a tourist tax of 83 cents ($0.93) per night which it then passes on to the local authority.

As a result, Airbnb contributed €1.169 million ($1.310 million) to Paris city coffers for the last quarter of 2015 corresponding to “1.4 million overnight stays over this period”, the municipality told AFP.

The agreement followed similar pledges by the San Francisco group to collect and remit taxes in Amsterdam from January 2015 and the US capital Washington and Chicago from February 2015.

Airbnb which allows people to rent out their rooms, apartments or homes was launched in 2008 and quickly became very popular.

But traditional hotel chains see it as a rival and accuse it of helping people avoid taxes and hosting illegal hotels on its website.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.

RENTING

Local authorities in France get power to crack down on Airbnb rentals

Authorities in Paris and other French towns will be able to regulate local businesses who wish to rent property on Airbnb, according to a decree published by the French government. 

Local authorities in France get power to crack down on Airbnb rentals
This illustration picture taken on July 24, 2019 in Paris shows the logo of the US online booking homes application Airbnb on the screen of a tablet. (Photo by Martin BUREAU / AFP)

The news was welcomed by authorities in Paris, who have long battled to keep a check on Airbnb and its impact on the rental market. 

On Sunday, the French government published a decree that allows the City of Paris to subject the renting of local businesses to prior authorisation. 

This decree applies to all types of offices, stores or medical offices who may be turned in holiday rentals. 

It aims to allow towns to limit the growth of rentals on Airbnb, “protect the urban environment and preserve the balance between employment, housing, businesses and services on their territory,” says the decree. 

The news was welcomed by authorities in Paris, which has been witnessing “the multiplication of ground floor business premises being transformed into holiday rentals,” said deputy mayor Ian Brossat, who is in charge of housing, in a press release

This decree which comes into effect on July 1st, “will prevent local businesses from being turned into holiday rentals,” Brossat added on Twitter.

The conditions businesses will have to meet in order to get an authorisation still have to be defined said Brossat, according to Le Figaro. But Paris aims to draft these regulations and get them voted by the end of 2021, so they can come into force at the beginning of 2022. 

Other towns allowed to apply the decree are those who have put into effect “the procedure of a registration number for furnished holiday apartments, owners and, subject to contractual stipulations, tenants of local businesses who wish to rent them as furnished holiday apartments.” 

In recent years, Paris city authorities have made tax registration obligatory for apartment owners and have restricted those renting out their primary residence to a maximum of 120 days a year.

Now if owners want to rent a furnished property for less than a year to holidaymakers, they must apply to local authorities for permission to change the registered use of the space.

They are then required to buy a commercial property of an equivalent or bigger size and convert it into housing as compensation. 

Until then, these onerous and time-consuming tasks did not apply to local businesses who only had to fill out a declaration.  

In February, France’s highest court, the Court of Cassation, ruled that regulations introduced to counter the effects of Airbnb and other short-term rental sites on the local property market were “proportionate” and in line with European law.

SHOW COMMENTS