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Economy

Quebec, Airbnb reach agreement to collect lodging tax

WATCH ABOVE: A new survey shows while most Canadians want ride-sharing services, like Uber, regulated, they'd prefer home-sharing services, like Airbnb, to stay the way they are. Nadia Stewart reports.

Airbnb and the province of Quebec have announced what is being called a first tourist tax agreement on short-term rentals in Canada.

READ MORE: Doubts raised over Quebec’s legislation regulating Airbnb-type rentals

Quebec Tourism Minister Julie Boulet and officials with the Canadian arm of the home-sharing platform made the agreement official Tuesday.

Beginning Oct. 1, Airbnb will automatically collect and remit a 3.5 per cent lodging tax on bookings.

READ MORE: Quebec government to legalize Airbnb

Airbnb’s Alex Dagg says the deal is a first for a Canadian jurisdiction and she adds it underlines just how the company and a province can work in tandem.

WATCH BELOW: Cracking down on Airbnb

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The company says nearly one million people used the service in Quebec in the last year alone and it estimates the province would have recouped $3.7 million in 2016 had the tax been in place.

READ MORE: Airbnb regulations in Quebec won’t necessarily mean same approach across Canada

Quebec implemented a law in April 2016 regulating properties on Airbnb and other home-rental websites.

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