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

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if ltitf t/utir 11111 t 712 um up I u wV 1N146,000614111111111111111 1111111111111111111.'014AR 00#11P 1111111111 ORANGE COUNTY In S T ORS BUREAU AIRBNB IN ORANGE COUNTY AND NORTH CAROLINA CURRENT REGULATIONS Effective August 15, 2015, Airbnb began collecting and remitting occupancy taxes statewide in North Carolina in all local jurisdictions that impose such taxes.This made North Carolina the first state in the nation where Airbnb is collecting and remitting both sales and occupancy taxes in full compliance with state and local laws. After months of pressure from North Carolina Restaurant and Lodging Association (NCRLA) and the lodging community as a whole, 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. Many state travel and tourism associations played a key role in shaping the debate and in underscoring the stark contrast of regulations that the hotel industry abides by that short-term rental companies and some commercial operators currently avoid. The travel and tourism industry will continue to work alongside federal, state, and local officials to address issues including zoning, affordable housing, insurance, and common sense safety, security, and health and fire standards for short-term rentals. ORANGE COUNTY COLLECTIONS PROCESS 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. Cumberland, Currituck, Dare and Moore confirm this as well. Buncombe, Durham, Mecklenburg, and Wake began their collections on June 1, 2015. 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, or return and payment, they would be subject to penalties. The Orange County 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.