Airbnb to collect local taxes on stays in Plano starting in May

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Plano has become the first Texas city to reach an agreement with Airbnb that will formalize the collection of local hotel taxes, the company said.

Starting May 1, Airbnb will begin to automatically collect Plano’s 7% tax on hotel transactions, the company said in a statement. The company’s app and website offer users a platform to list their homes for short-term rental or to book stays with other Airbnb users, making it an unconventional competitor to traditional taxpaying hotels.

“We believe this partnership will unlock significant new revenue for Plano moving forward, as it has for the state,” Laura Spanjian, the senior policy director for Airbnb, said April 18 in a statement. “In addition to this tax agreement, we are committed to using our platform to help bring family-friendly tourism and economic development to Plano and the entire DFW region.”

The company had previously struck a deal in 2017 with the state of Texas to collect hotel taxes, resulting in more than $15 million in tax revenue in the first year. The state’s portion of hotel taxes amount to 6% of a night’s hotel fee, which is collected on top of the city’s 7%.

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Daniel Houston
Daniel Houston covers Plano city government, transportation, business and education for Community Impact Newspaper. A Fort Worth native and Baylor University graduate, Daniel reported previously for The Dallas Morning News and The Associated Press in Oklahoma City.
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