St. John's losing out on $250K in taxes due to rentals like Airbnb

St. John's city council is calling for the province to "modernize" short-term rental accommodations like Airbnb with a regulatory system so the city won't lose out on levy fees.

In a release sent outMonday evening, the city said it is losing $250,000 annually because of unregistered rentals.

"Online platforms such as Airbnb are here to stay; they provide an important economic opportunity for property owners and an option for travellers," it said. "It is clear that a modern regulatory system is required."

• Newfoundland's hospitality association calling for crack down on Airbnb

All registered hotels and bed and breakfasts in the city must pay a levy to the city's tourism and marketing program amounting to four per cent of the nightly fee for each room sold.

The city brings in around $3 million each year through the tourism marketing levy, which is used to "market the city as a provincial and national tourist destination," and to pay down the debt on the convention centre.

The city doesn't have jurisdiction to make any changes to the short-term rental system that falls to the province but council has decided to add the city to the growing list of groups asking for change.

Last week, the province's hospitality association asked the provincial government to crack down on Airbnb, saying the province could have raked in more than $1 million in taxes if it was regulated.

Bed and breakfast owners on the Avalon Peninsula spoke out last summer about their struggles with competing against homeowners renting roomson Airbnb.

Airbnb itself has even called for government regulation, tellingthe federal Liberals: "We want to be regulated."

Quebec and British Columbiahave struck deals to get tax revenues from bookings on Airbnb, along with several Canadian cities.

Quebec's deal netted the province about $2.8 million over the first six months of the tax agreement.