It’s official, Jalisco will levy tax on Airbnb and other digital platforms

Jalisco has amended its income laws to charge a 3 percent tax for the use of Airbnb, Homeaway and other digital applications that offer online lodging service.

The state Congress unanimously approved a reform that establishes the lodging tax that will be charged to the user on the platforms, and the platforms will play the role of intermediaries and must register in a state registry which will be prepared by the Secretariat of Planning Administration and Finance, and report every two months of the total services they provide.

The money raised will be used to promote the state’s tourism; according to information provided by Airbnb, in Jalisco transactions are made for about $577 million pesos ($30 million dollars) a year, and the tax would be around $20 million pesos annually.

According to Airbnb information, the platform has grown by 160% in the number of travelers in Mexico, which is the second largest market in Latin America after Brazil .

The company has a catalog of 37,000 properties distributed throughout Mexico, of which the leading destinations are 8,000 in Playa del Carmen, 4,400 in Puerto Vallarta, Jalisco and 2,200 in Cancun, Quintana Roo.

Recurrent app clients are young, who save money by staying on private properties, versus what they would spend on hotels.

The reform only deals with the collection of the tax, and does not regulate the rights of the users. The online platforms will be obligated to collect and pay the lodging tax.

Related: Puerto Vallarta applies pressure to collect lodging tax from Airbnb rentals, Deputies of Jalisco approve tax on Airbnb rentals

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