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Office Of Con.rtilydionalOfzcers 03/22/2016 +� P INDIAN RIVER COUNTY ATTORNEY Dylan Reingol4 County Attorney William K.DeBraal,Deputy County Attorney Kate Pingolt Cotner,Assistant County Attorney MEMORANDUM TO: Board of County Commissioners THROUGH: Jeffrey R. Smith, Clerk of Court and Comptroll r FROM: William K. DeBraal, Deputy County Attorney DATE: March 16, 2016 SUBJECT: Agreement to Collect Tourist Development Tax with Airbnb Airbnb, Inc. (Airbnb)is a San Francisco based company that specializes in short term vacation rental properties throughout the world. Preliminary research conducted by staff suggests that there are approximately 70 units in Indian River County advertised on Airbnb. Owners (Airbnb uses the term "Hosts") can list their property and rent out the entire living space or just one room. Guests remit payment to Airbnb after making a reservation and Airbnb holds the money until the Guest arrives at the rental and is satisfied with its condition. Airbnb claims they do not take payment for the rental, rather they act as a medium like PayPal and simply hold the funds until the Guest is satisfied that the accommodations are as advertised. A small fee—usually around 3% - is retained by Airbnb. Staff reached out to Airbnb during the Short Term Vacation Rental Advisory Committee process as it was discovered that Pinellas County entered into an agreement with Airbnb where collection of the Tourist Tax would be collected by Airbnb and remitted to the County. Most recently, Airbnb retained the services of Price Waterhouse to negotiate Tourist Tax collection agreements with interested Counties and municipalities. Staff has negotiated the attached agreement with Airbnb and presents it to the Board for consideration and approval. Under the terms of the Agreement, all Indian River County listings appearing on the Airbnb website would charge the 7% Sales Tax and 4% Tourist Tax. When the Guest makes a reservation on the Airbnb website the Sales Tax and Tourist Tax will automatically appear on the bill as additional charges. Neither Hosts nor Guests will have an option to avoid them. Airbnb will notify all Hosts with a copy of a notice of the collection of the Sales Tax and Tourist Tax similar to the one attached to this memorandum. Just like checking into a hotel in Florida, everyone booking with Airbnb in Indian River County will be charged the Sales Tax and Tourist Tax. The Sales Tax will be remitted to the State and the Tourist Tax will be remitted to the County Cleric. Airbnb will not charge for this service. .% pptoved Uaie h Aamin. 3 tT l� APPROVED FOR------- Legal B.C.C, VIEETilq- S ; Dept ,(;OUNTY ATTORNEY Risk migr. — 153