BAGHDAD: Puerto Rico has signed a deal with Airbnb under which the company will collect a room tax from hosts on the island and turn the revenue over to the U.S. territory’s government, which is mired in a financial crisis.
Gov. Ricardo Rossello said Thursday collection will start in August and will ensure compliance from hosts as well as ease the government’s administrative burden. Officials said the deal will ensure the collection of more than $2 million in taxes.
The San Francisco-based company has over 4,300 hosts and 7,100 listings in Puerto Rico. More than 250,000 Airbnb guests were reported in Puerto Rico in the past year, an increase of 83 percent from the previous year. That activity generated more than $28 million, with the typical host earning $5,700 a year.
