Popular short term rental booking websites like AirBnB have demonstrated that the internet can be a lucrative marketplace that tax and revenue must heed. In fact, the $25 Billion valuation should be further evidence of the value of a grey-market for tax called the Sharing Economy. Tax Discovery departments for the state, city and county should be analyzing the highest-earning Hosts on AirBnB to identify potential un-registered owner/operators of vacation rentals. Furthermore, some of the Hosts may be claiming homestead exemption on their property even while renting it out. Harmari TaxCrawler was applied to the website to estimate how much revenue each of the major US touristic cities brought into the Hosts of AirBnB properties.
The revenues calculated were a product of
- the number of reviews on the property
- the price per night
- minimum number of nights
The revenues are likely much higher because some AirBnB guests stay longer than the minimum number of nights, and not all AirBnB guests write a review for each stay. Therefore, the actual figures can be at least double the figures shown below:[table “” not found /]
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