Airbnb, the world’s leading community-driven hospitality company, has partnered with the state of North Dakota on a new tax agreement. Beginning April 1, Airbnb will begin collecting and remitting the 5% State Sales Tax on behalf of its hosts and guests on eligible bookings.
- North Dakota State Sales Tax: 5% of the listing price including any cleaning fees, for reservations 29 nights and shorter.
- City and/or County Sales and Gross Receipts Tax: 0.25%-3% of the listing price including any cleaning fees, for reservations 29 nights and shorter.
- City Lodging Tax: 1%-2% of the listing price including any cleaning fees, for reservations 29 nights and shorter.
- City Lodging and Restaurant Tax: 0.25%-1% of the listing price including any cleaning fees, for reservations 29 nights and shorter.
Guests will be charged the tax on their Airbnb bill and the company will then remit the taxes collected to the city.
“A formal tax agreement will help simplify the tax collection process for Airbnb hosts in North Dakota. Tourism revenues play a part in the state budget, and this will ensure that the appropriate taxes are being collected in a timely and efficient fashion.”Ryan Rauschenberger, Tax Commissioner
With this new agreement, North Dakota joins more than 360 jurisdictions globally where Airbnb has collected and remitted more than $510 million in hotel and tourist taxes worldwide since 2014.
For North Dakota families, Airbnb makes it possible to pay their bills, stay in their homes and save for their own vacations. The typical host in the state earns $2,900 of meaningful extra income a year sharing their home.
“Airbnb helps North Dakota families earn extra money to help make ends meet and our hosts want to pay their fair share of taxes. We are excited to partner with the State of North Dakota to make the tax collection process easier for all parties and look forward to working together to attract even more visitors to the state.”Marisa Moret, Airbnb Public Policy Director
Airbnb is democratizing travel by creating an affordable way for travelers to authentically explore every corner of the world, including the state of North Dakota. To date, there have been more than 300 million guest arrivals in Airbnb listings around the globe, including more than 6,800 in North Dakota last year.
How does Occupancy Tax Collection and Remittance by Airbnb work?
Airbnb’s mission is to create a world where people can belong anywhere when they travel by being connected to local cultures and having unique travel experiences. Today, Airbnb is the world’s leading community-driven hospitality company, with 4 million listings in 65,000 cities and more than 191 countries.