Introduced by Rep. Doyle Heffeley (R-Carbon), House Bill 1810, which seeks to ensure that online rental websites, such as Airbnb and Homeaway, pay the appropriate taxes, was approved last week by the House Tourism and Recreational Development Committee.
“As it stands now, bed and breakfasts and hotels are taxed the room tax imposed by counties, but there is no way to ensure newly created rental sites are registering lodgings to ensure they are also paying the taxes,” Heffley said. “This bill does not create any new taxes. Rather, it ensures our tax code keeps up with ever-evolving technology.”
The legislation would specifically require online hosting platforms that allow consumers to book overnight lodging to register with the Pennsylvania Department of Revenue. Through such a registration, the state government and counties would be allowed to better collect the hotel occupancy taxes from patrons. The bill would also bar hosting platforms from facilitating the booking of lodging in the commonwealth until they are registered.
“My bill simply levels the playing field to ensure hosting platforms remit the same taxes as bed and breakfasts and hotels,” Heffley said.
The legislation will now head to the full House floor for further consideration.