Agenda - 02-02-2016 -13-5 - Information Item - Memo Regarding 2015 State of Airbnb in North Carolina and Orange County

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INFORMATION ITEM �mw»4 00«��a��om� �.u.Diwjt�Inili Na%JddkY+�RfN01 IINlIUpIIIU IU�147� �U lll�lfvll nusti wie 0,00.00000,1111111 pgI �� 011011 �IIIWII0IIWII00llllf �� 0 IIIIIIIIIIIIIIIIIII IIIIIIIIIIIIIIIIIII0 1111111 'A 11' 1111111 000 Founded in 1752 in the year! of North Carolina Date January 21, 2016 To: Orange County Commisioners From: Laurie Paolicelli, Director of Community Relations and Tourism Re: 2015 State of Airbnb in North Carolina and Orange County Response to Commissioner Penny Rich's petition In response to Commissioner Rich's request for information on the state of Airbnb regulatory efforts and tax collection in Orange County,please accept this update: After months of pressure from North Carolina Restaurant and Lodging Association(NCRLA) Airbnb first began collecting and remitting sales tax statewide on June 1, 2015, and also began collecting and remitting occupancy taxes in four counties–Buncombe, Durham, Mecklenburg, and Wake—at that same time. Then the full-fledged statewide tax collections began on August 15, 2015. Orange County was one of 96 counties in North Carolina to receive a statement from Airbnb dated July 30, 2015 providing notification that it would begin remitting tax collections starting on August 15, 2015. Airbnb has remitted monthly as required since that time, based on the gross receipts obtained each month from its clients. All occupancy taxpayers are required to submit a return each month even if they do not have taxes to remit. If there were a month in which Airbnb (or any other occupancy taxpayer) did not submit a return, the Orange County Tax office would notify them by mail that they did not receive the return and/or payment and notify them of the assessed penalty. They would have 15 days to remit the assessed penalty, along with the missing return and taxes owed if applicable. If they still did not remit, Orange County would follow the enforcement remedies as set by G.S.105-236 for failure to pay or file a return for State sales and use taxes. In Orange County, Airbnb currently (12/29/2015) lists: 123 entire home rentals; 140 private room rentals The Visitors Bureau estimates 158 rooms booked per day through Airbnb which would yield $646,191 combined occupancy and sales tax. It is recommended that Orange County work with municipalities to review compliance and tax remittance and recommend greater enforcements.