Photo courtesy of Airbnb
Airbnb has agreed to collect and remit Pennsylvania's 6 percent hotel occupancy tax on behalf of hosts across the state beginning next month.
Pennsylvania Department of Revenue Secretary Eileen McNulty announced the agreement with the San Francisco-based home-sharing company Wednesday.
The state's hotel occupancy tax will apply to hosts renting out a property to a guest for periods of less than 30 days starting July 1.
In addition to the 6 percent occupancy tax, the state's Revenue Department will also collect a 1 percent local hotel tax in Philadelphia and Allegheny County (Pittsburgh). Airbnb will collect and remit the additional tax for hosts renting out their properties in those areas.
"This is a win-win for hosts and the commonwealth," said Pennsylvania Governor Tom Wolf in a statement. "The agreement with Airbnb places Pennsylvania at the forefront of states responding to the sharing economy and will help to level the playing field across the lodging industry."
READ MORE: How Hotel, Airbnb Rates Compare Around the World
In her own statement, McNulty thanked "Airbnb for working with us to help thousands of hosts across the state to be compliant with the law."
"This agreement will generate nearly $1 million in new revenue for the commonwealth to help fund vital state services," she added.
Pennsylvania isn't the first state to collect hotel occupancy tax from Airbnb hosts, but not every state does. And in some states, taxes only apply to hosts in select counties or regions.
Travelers can click here for a complete breakdown of occupancy tax applied to Airbnb rentals across the U.S. and around the world.
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