Airbnb reaches tax agreement with Miami-Dade County

Miami /
Mar.March 20, 2017 10:45 AM

Airbnb finally reached a tax deal with Miami-Dade County, part of Airbnb’s fourth largest market in the U.S.

If the county commission approves the deal, Airbnb will collect and remit occupancy taxes on behalf of its roughly 6,800 hosts in Miami-Dade. Based on 2016 numbers, the short-term rental giant would collect $8 million, Airbnb spokesperson Ben Breit said. The first two months of 2017 are already up 25 percent compared to the year before, he noted.

The deal means that Airbnb would tack on a 6 percent tax for its hosts in most of the county. The company reached an agreement with Surfside in March, which is excluded from the county’s, and has not reached an understanding with Bal Harbour, also excluded. In Miami Beach, one of its biggest and most contentious cities within the county, Airbnb would collect a 3 percent convention tax, but not the city’s 4 percent bed tax.

Miami-Dade marks the 36th county in Florida with which Airbnb has reached similar deals. Within the county, though, the short-term rental platform has faced significant opposition from Miami Beach and city of Miami mayors Philip Levine and Tomás Regalado. They are set to hold a joint press conference on Monday regarding Airbnb and other short-term rentals.

On Friday, the Miami-Dade County Property Appraiser issued a press release about homestead exemption fraud. In Florida, homeowners can receive a $50,000 exemption on the assessed value of their primary residence. The property appraiser’s office warned homeowners that they may lose their exemption status and “may also have to pay back taxes with a 50% penalty and 15% interest rate,” if renting their houses out on platforms like Airbnb.

The Miami City Commission will vote on Thursday on a Regalado-sponsored resolution requiring the city to “vigorously” enforce its zoning laws. Regalado has argued that the best way to tackle the issue is by going after Airbnb hosts in a way similar to the city of Miami Beach, which enacted legislation imposing $20,000 fines against homeowners who illegally rent their properties through Airbnb.

Under the Miami-Dade agreement, Breit said Airbnb would likely collect and remit taxes every two weeks. The company is also in talks with Broward County on a similar arrangement, he said. In Miami-Dade, hosts earned the most out of any other county at $113 million in 2016, and the tri-county area’s hosts raked in a combined $160 million, Airbnb said in December.

“South Florida is seen as the fourth [biggest] market for Airbnb in the U.S.,” Breit said. “This is a huge deal.” South Florida follows New York, Los Angeles and San Francisco.

Airbnb, valued at $31 billion, brought in $1 billion during its latest round of fundraising, 10 percent of which came from China’s sovereign wealth fund, the China Investment Corporation. CEO Brian Chesky said last week that the company is on pace to launch an initial public offering in 2018.


Related Articles

arrow_forward_ios
Terranova’s Stephen Bittel with 93 Miracle Mile
Terranova plans retail-and-office project on Coral Gables’ Miracle Mile
Terranova plans retail-and-office project on Coral Gables’ Miracle Mile
Ytech's Yamal Yidios with 1500 Brickell Avenue
Ytech buys historic Brickell château, plans restoration
Ytech buys historic Brickell château, plans restoration
50 and 60 Northeast Third Street and 222 and 234 Northeast First Avenue (Google Maps)
Namdar pays $41M for downtown Miami apartment towers dev site
Namdar pays $41M for downtown Miami apartment towers dev site
A photo illustration of Icon on 8's planned short-term rental hotel along with the current site at 930-950 Southwest 8th Street in Little Havana (Getty Images, Icon on 8, Google Maps)
LA developer plans Little Havana short-term rental hotel
LA developer plans Little Havana short-term rental hotel
Ricardo Vadia, Jon Paul Perez, and Oscar Rodriguez with District 225
Developers score $76M construction loan for Airbnb-branded condos in downtown Miami
Developers score $76M construction loan for Airbnb-branded condos in downtown Miami
Hollywood Locations' Christopher Ursitti and 1400 Northwest 31st Avenue (Hollywood Locations, Google Maps)
Movie studio complex may rise on former incinerator site in Fort Lauderdale
Movie studio complex may rise on former incinerator site in Fort Lauderdale
McDowell wants to build 201 apartments near Homestead, puts land under contract
McDowell wants to build 201 apartments near Homestead, puts land under contract
McDowell wants to build 201 apartments near Homestead, puts land under contract
Jackie Soffer with 2750 Northeast 199th Street (Google Maps, Turnberry.com)
Jackie Soffer’s Turnberry proposes office/retail project near Aventura Mall
Jackie Soffer’s Turnberry proposes office/retail project near Aventura Mall
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...