Commencement weekends throughout the state are expected to be a boon for Airbnb hosts, according to figures released by the online short-term rental marketplace. And Missouri will be collecting taxes on the influx of guests.
In January, Airbnb announced a tax agreement with the Missouri Department of Revenue to collect and remit state and local sales taxes on behalf of its 6,300 Missouri hosts. And in May, Airbnb announced a tax agreement with St. Charles County to collect and remit local county taxes on behalf of it’s St. Charles hosts.
An additional $193,000 in Airbnb rentals will be brought in during graduation weekends in May alone, according to figures released by Airbnb. The rough figures focus solely on eight universities and the projected influx of guests for graduation ceremonies.
The figures released do not specify the amount of tax that will be collected, but the agreement signed in January established a 4.2 percent statewide sales tax rate on Airbnb bookings. This would translate into just over $8,000 in sales tax revenue for the state. In February 2018, the first month the tax agreement with the state was in effect, $306,000 in state taxes were collected.
“By expanding lodging capacity and helping to welcome additional guests during these major events, home sharing facilitates significant economic activity for communities with large universities,” said Laura Spanjian, Airbnb policy director. “Most of us can relate to having to book hotels 1-2 years in advance of college graduations. We’re very encouraged to see our platform utilized to provide affordable lodging accommodations for college families and support Missouri’s middle-class host community.”
The largest influx of guests using Airbnb services is expected to in Columbia for Mizzou’s graduation weekend May 11-13. The 820 projected guests represent a 300 percent spike in rentals bringing in an expected $80,000.
The Midtown and Grand Central neighborhoods near Saint Louis University are projected to host 400 guests bringing in roughly $40,000. The University City neighborhood in St. Louis is projected to see 220 guests, bringing in $25,000 for Washington University’s commencement.
Missouri State University’s May 18 commencement in Springfield is expected to bring in $18,000 through 280 projected Airbnb guests.
The Rockhill neighborhood near the University of Kansas — Kansas City is expected to see 150 guests bringing in $14,000. While the 1-mile radius around University of Missouri — St. Louis is expected to see 30 guests bringing in $3,000.
Lindenwood University’s graduation is projected to bring in 125 guests totally $9,000. Roughly $4,000 through 50 guests is projected to be brought in through Southeast Missouri State University commencement in Cape Girardeau.