Airbnb to remit $1.2M in tax revenue to Arkansas

LITTLE ROCK, Ark. - Airbnb says it plans to remit about $1.2 million in collected tax revenue to Arkansas.

The short-term lodging company said in a statement Monday that during its first year of a voluntary agreement, it charged guests three separate state taxes, the Arkansas Democrat-Gazette reported.

In addition to paying a base fee, Airbnb guests last year paid a 6.5 per cent state gross receipts tax, a 2 per cent state tourism tax, and a local sales and use tax.

The company has tax agreements with Arkansas and the cities of Bentonville, Eureka Springs and Hot Springs. An Airbnb spokesman said the tax revenue collected and remitted in those cities will be released later this year.

Eureka Springs City Clerk Ann Armstrong said Airbnb has helped the city spot "gaps" in financing for the hospitality and travel industry.

Laura Spanjian, Airbnb's public policy director for Arkansas, said the company is pleased it can assist in welcoming a growing number of visitors to the state, while also generating new revenue.

Airbnb figures show the average host in Arkansas earned $4,600. The company has more than 1,600 Arkansas residences registered to its site.

Airbnb was founded in 2008 and is one of the leading home-sharing services in the U.S.


Information from: Arkansas Democrat-Gazette,

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