The popular online hospitality company, Airbnb, has worked out some new municipal taxing agreements with a number of cities in Ontario, including the City of Greater Sudbury.
It will mean a new tax added to bills, and the city will be getting the extra revenue.
The agreement means owners of Airbnbs will have to collect an extra 4% tax as hotels do.
A move that the organization says is the right thing to do
"This was really a mutual agreement between sudbury had reached out to us and our platform..we would like to look forward to being able to contribute back to communities where we have a thriving healthy home sharing community." said Alex Dagg, public policy manager of Airbnb Canada.
There are over 100 Airbnbs located in Greater Sudbury, each bringing in about $7,600 a year, with almost 90 stays in each. The average length of each stay is three and a half days.
"Our host community in Sudbury are largely women. They often are seniors, people with extra space in their homes. And/or millennials, people who are trying to buy their first homes, and may travel, and have space available in their homes. These are the types of people who are sharing their homes; really respect their role in building a vibrant, healthy community here in Sudbury. And we are really happy to give back, and encourage people to come visit." said Dagg.
The new 4% tax comes into effect as of October 1st
