Lawmakers Grapple With Short-Term Rental Taxes

The legislature ensured in its 2018 session short-term rentals – such as Airbnb – would be legal throughout the state. Lawmakers now grapple with how to tax those rentals.

There seems to be broad agreement among stakeholders that short-term rentals should pay sales and innkeeper’s taxes, like hotels. But there isn’t agreement about how they should be collected.

Matthew Kiessling represents short-term rental companies that include Airbnb.

“Ultimately the burden for tax collection needs to fall to the homeowner, but platforms can and should be provided an opportunity to aid in that tax collection,” Kiessling says.

Kiessling says the complexity of local taxes makes it difficult for platforms.

Indiana-based General Hotels Corporation owner Jim Dora doesn’t understand that.

“I can operate throughout the Midwest in multiple states and multiple jurisdictions and I have to make sure I get it right … but an international company can’t do it?” Dora says.

The legislative session begins in January.