IN THE NEWS - THE QUÉBEC GOVERNMENT AND AIRBNB HAVE REACHED AN AGREEMENT FOR A 3.5% LODGING TAX
Recently, the Montreal real estate market been seeing a significant influx of investors from outside of Quebec, purchasing condos in the downtown area. This change in the legitimization of AirBnB in Quebec will likely contribute to increasing sales.
As short term rentals continue to become more popular for tourists and more profitable for investors, condo buildings will need to develop regulations to maintain the peace and property managers will become more in demand for investors living outside of Montreal.
Quebec reaches 'landmark' deal with Airbnb
Agreement to pay 3.5% lodging tax aims to address concerns in hotel industry
CBC News Posted: Aug 29, 2017 9:57 AM ET Last Updated: Aug 29, 2017 11:24 AM ET
Under the new agreeement with the Quebec government, Airbnb will automatically collect and remit the 3.5 per cent tax on lodging on bookings. (John MacDougall/Getty Images)
The Quebec government has reached an agreement with Airbnb, allowing the home-rental website to collect and remit the tax on lodging on behalf of its hosts.
Under the deal, which goes into effect on Oct. 1, Airbnb will automatically collect and remit the 3.5 per cent tax.
"The agreement announced today is a positive step toward the future and development of tourism in Quebec, since it will make it possible to adapt the taxation system to the new collaborative and digital economy," Julie Boulet, the province's tourism minister, said in a statement.
Boulet said the agreement aims to address concerns voiced by the hotel industry, who argued Airbnb wasn't operating on a level playing field by not paying a lodging tax.
Alex Dagg, Airbnb's public policy manager for Canada, called the "landmark" agreement a "defining moment for Airbnb in Canada."
"The agreement in Quebec is an example of how Airbnb and government officials can work together as partners," she said in a statement.
Representatives from Airbnb and the province made the deal official at a joint news conference Tuesday in Montreal.
Law put into effect last year
A provincial law that went into effect last year was meant to ensure hosts obtain a permit and pay a hotel tax, but the majority of hosts didn't register with the province.
That law will be modified to comply with the new agreement.
There are more than 22,000 Airbnb hosts in the province, with an average of 38 nights hosted per year.
In 2016, the Quebec government would have collected $3.7 million in taxes if the new agreement had been in place.