Airbnb and VRBO Tax Being Considered in Midland
Midland City Council is considering charging a hotel occupancy tax for those who host people in an Airbnb or VRBO (Vacation Rental By Owner).
According to NewsWest 9, if you are the proprietor of an Airbnb or VRBO in Midland, you could see a hotel tax being charged to you soon.
Midland City Council is looking into a plan to update city policies on short-term stay residences to make them have to pay local hotel occupancy taxes.
Airbnbs and VRBOs are currently collecting that kind of tax for the state only, but some council members think it would be a great source of revenue for Midland.
"The hotels have to do it, the motels have to do it and in looking at that and researching that, I found that there are several hundred thousand dollars worth of potential taxes coming into the city," said Michael Trost, At-Large City Councilman.
Trost estimates that there are around 300 short-term stay residences in the city to collect such a tax from to help out the city.
"We're eligible to do it. The funds are short in the city. I'm trying to find new sources of revenue for the city so that we don't have to raise property taxes," said Trost.
Trost says the funds from the tax would be reinvested into the community.
"It funds organizations, mostly non-profit organizations that want to put on things, like the arts council and other non profits who want to get some help. This helps fund those. The larger that fund, the more we can do. The convention center here behind us is funded partially by hotel occupancy taxes," said Trost.
Trost is confident the measure will pass but the money will not come into the city till sometime next year.