HONOLULU (AP) — Hawaii lawmakers have advanced a bill that would allow online brokers such as Airbnb to collect taxes on behalf of people advertising private rentals on the websites, but they removed part of the proposal that would have
HONOLULU (AP) — Hawaii lawmakers have advanced a bill that would allow online brokers such as Airbnb to collect taxes on behalf of people advertising private rentals on the websites, but they removed part of the proposal that would have targeted illegal camping ads by requiring online brokers to verify the legality of their listings.
Residents and lawmakers had complained that Hawaii families have more competition for inexpensive vacation accommodations because campsite permits for public parks are being re-sold by online brokers for higher prices.
“We need to set standards of responsibility for those companies,” said state Sen. Laura Thielen, who pushed for the provision targeting illegal camping ads. “It is unforgivable for us to pass legislation that would allow these practices to continue when we have it within our means to stop it right now.”
Nevertheless, the change allowing Airbnb and similar websites to collect taxes on behalf of those placing ads on their websites could bring in an estimated $15 million in tax collections to the state, said Beth Adair, head of global tax for Airbnb. The company already does so in 160 other jurisdictions.
“It’s an administrative burden for them that we’re willing to take on,” Adair said. “They want to pay their fair share.”
Rep. Jo Jordan said the bill was intended to be about helping the state bring in tax revenue that it’s not currently collecting, and that it wasn’t the right venue to try to get the online private rental-listing industry under control.
“This is a fast and furious industry that I think even the federal government has been challenged to keep up with,” Jordan said.
