Quebec losing millions in taxes to Airbnb rentals
Published Friday, June 9, 2017 7:21PM EDT
Thousands of people in Montreal for the Grand Prix are staying in places they rented through Airbnb, and politicians say that's a growing problem for several reasons.
While people with places for rent enjoy the profits, Revenue Quebec knows that many are not properly paying their taxes -- both income taxes and the specific taxes dedicated to hotels.
Many people advertising places for short-term rents have also failed to acquire the necessary permits.
Municipal councillors say that in the Plateau Mont Royal borough and other central areas some condominiums and apartments have been turned into black market hotels, much to the dismay of people who live in those neighbourhoods.
That's prompting Quebce Solidaire MNA Amir Khadir to call for stricter enforcement of existing laws, and the creation of tougher legislation.
He's getting support from MP Helene Laverdiere.
"There's the problem of citizens who suddenly find loads, loads of tourists and people they don't know around where they live. And sometimes for big parties and things like that there's also the problem that some people are thrown out of their lodging for Airbnb exploitation by somebody who doesn't even live there," said Laverdiere.
Under Khadir's proposed law, Airbnb would be forced to pay taxes in Canada and more would be done to protect neighbourhoods.
Khadir estimates that this weekend alone the Quebec treasury is losing out on $4 million in unpaid taxes.
Quebec's tourism department is studying possible changes to the law.