Economy

Airbnb donated 150 million euros in tourist tax to French cities

Airbnb will have paid 148 million euros in tourist tax to French municipalities in 2022, an amount up 60% compared to the previous year, thanks to the recovery in tourism. The global giant of tourist rentals generates its second largest turnover in the world in France, it collects and pays tourist tax in more than 29,000 French municipalities. The vacationer pays the landlord in addition to the amount of accommodation. The latter then transfers it to the municipality. Local authorities set the share of this tax, which can range from 1 to 5%.

In 2022, Paris notably benefited from 25 million euros, against 9 million in 2021, Marseille, for its part, received 2.8 million euros and Nice, 2.4 million. “These major cities thus benefit from the return of international travelers and major events, which again attract travelers to their territory,” reports Airbnb. 30% of the tourist tax was collected in municipalities with less than 3,500 inhabitants.

More transparency between municipalities and digital platforms

“The tourist tax has been included in the general code of local authorities since 1910”, recalls Anne-Andréa Vilerio, lawyer in public business law. Municipalities that are touristic, coastal or in the mountains are eligible. It allows them to invest in the infrastructure needed to welcome tourists.

Since 2019, all digital platforms have been required to collect this tax. “It’s quite advantageous since the local authorities are no longer obliged to carry out this collection themselves. They have less work and thus reduce their administrative costs,” explains the lawyer.

Airbnb, which preceded the law from the 1er July 2018, paying it mid-year and at the end of the year. “This income is reassuring and stabilizing for the municipalities”, notes Anne-Andréa Vilerio. Before this measure, digital platforms were not obliged to communicate the address of the rented accommodation. Local authorities therefore had great difficulty in collecting the tourist tax.

To further facilitate exchanges between Airbnb and local authorities, European justice approved in April 2022 the obligation for tourist accommodation rental platforms to communicate information on transactions carried out to national tax authorities. For Anne-Andréa Vilerio, “It is important that municipalities have a say in these collections. This allows you to develop a relationship of trust.

Faced with the increase in tourist accommodation, more controls

However, the relationships of the platforms with the communities are not looking good. Many cities blame Airbnb, Booking and other platforms for causing a housing shortage. Thus, the City of Paris has implemented a series of measures to fight against this scourge. Since 2017, when the owners want to transform an accommodation into furnished tourist accommodation, they are obliged to declare it to the town hall of Paris.

Latest measure to date, since 2022, business owners wishing to transform their accommodation into furnished tourist accommodation must request authorization. “Now there are a lot more refusals,” explains Anne-Andréa Vilerio. Successful bet ? In 2021, the City of Paris has 43,000 advertisements for furnished tourist accommodation compared to 50,000 in 2020.

Source : BBNWORLDNEWS

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