Airbnb Announce Tax Agreement With Plano

Airbnb has announced a tax agreement with the City of Plano that will allow the company to collect taxes on behalf of its hosts and remit the revenue directly to the city, the company said in a news release.

"Plano will fully benefit from people visiting the region and staying longer through home sharing. Effective May 1, Airbnb will automatically collect and remit the Plano Hotel Occupancy Tax (7%) for taxable bookings, making the process seamless and easy for local Airbnb hosts," the company said in its release.

So far, Airbnb has partnered with over 400 local governments throughout the U.S. to collect and remit taxes. This marks Airbnb’s second tax agreement in Texas, and the first with a Texas municipality. The company collaborated in with the Texas Comptroller’s Office in 2017 on a tax partnership to collect and remit the Texas state occupancy tax on all taxable bookings throughout the state.

"Airbnb delivered $15.3 million in tax revenue to the state in the first year of that agreement, nearly doubling the initial expectations. Plano will now become the first Texas municipal government to take full economic advantage of tax revenue from Airbnb listings," Airbnb stated.