Quebec reaches 'landmark' deal with Airbnb

The Quebec government has reached an agreement with Airbnb that will see the home-rental websitecollect a lodging tax on behalf of its hosts.

Under the deal, which goes into effect on Oct. 1,Airbnbwill automatically collect and remit the 3.5 per cent tax.

"The agreement announced today is a positive step toward the future and development of tourism in Quebec, since it will make it possible to adapt the taxation system to the new collaborative and digital economy," JulieBoulet, the province's tourism minister, said in a statement.

Bouletsaid theagreement aims to addressconcerns voiced bythe hotelindustry, who argued Airbnbwasn't operating on a level playing field by not paying thelodging tax.

The money raised will be used to help fund the province's 22 regional tourism offices.

AlexDagg,Airbnb's public policy manager forCanada, called the deal a "landmark" and a "defining moment for Airbnb in Canada."

"The agreement in Quebec is an example of how Airbnb and government officials can work together as partners," shesaid in a statement.

Representatives from Airbnb and the province made the deal official at a joint news conference Tuesday in Montreal.

Law put into effect last year

There are more than 22,000Airbnbhosts in the province, withan average of 38 nights hosted per year.

In 2016, the Quebec government would have collected $3.7 million in taxes if the new agreement had been in place.

A provincial law that wentinto effect last yearwas meant to ensure hosts obtaina permit and pay a hotel tax, but the majority of hostsdidn't register with the province.

New legislation will be tabled this fall to ensure Airbnbhostscomply with the new agreement, Boulet said.

"We have to make a distinction,draw a line between what the sharing economy is and what is a business,"she told the news conference.

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