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Airbnb will start collecting Essex Co. bed tax

LAKE PLACID – On Saturday, the multi-billion-dollar vacation rental marketplace Airbnb will begin to collect the 3-percent occupancy tax on vacation rentals in Essex County that are booked through its popular peer-to-peer platform.

Also known as the “bed tax,” the funds derived from the agreement with the San Francisco-based company will raise money for town and county tourism and help to pay for the Essex County Fish Hatchery in Crown Point.

Speaking Thursday, county Treasurer Michael Diskin said Airbnb will send the collected monies to on a monthly basis. The county expects to receive its first batch of funds in early November.

“What that dollar amount is going to be is anybody’s guess at this point,” Diskin said.

As of July 1, the number of listed Airbnb hosts in Essex County jumped 39 percent compared to just six months prior, as 280 rentals were listed on Airbnb over the preceding one-year span, according to Regional Office of Sustainable Tourism CEO Jim McKenna. That number compared to 110 in Franklin County and 20 in Hamilton County.

Aside from that eventual total dollar amount, though, Diskin said he is unsure of any other details that Airbnb will provide, including total number of Airbnb bookings in the county per month.

The bed tax was extended to vacation rentals last year at the urging of Essex County hoteliers, and it went into effect Jan. 1. Through the first half of the year, compliance with the tax was slow, prompting McKenna in March to recommend to county supervisors that they enter into an agreement with Airbnb. Essex County approved a resolution in June. Most of the bed tax funds ROOST, the tourism organization that markets the region and its communities to visitors.

“We are excited that Essex County will be joining the growing number of New York counties that have recognized the economic benefits that home sharing brings to communities across the state,” said Josh Meltzer, Airbnb’s New York head of public policy

The company does not identify its hosts who’ve paid up. That’s a detail some members of the Essex County Occupancy Tax Vacation Rental Subcommittee expressed concern about in March, and North Elba Town Supervisor Roby Politi, one of the biggest real estate brokers in the area, echoed that concern last month at a town council meeting.

In March, McKenna said there was an original estimate of 800 to 900 vacation rentals in the county, not all of whom were using Airbnb.

From July 1, 2015, through July 1, 2016, total payout to Essex County hosts who used Airbnb to book their vacation rentals was $1.7 million, according to McKenna. The county initially expected to this year to raise around $250,000 from vacation rentals, whether booked through Airbnb or more traditional means. Total occupancy tax numbers will be reported by December.

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