TPT; additional rate; online lodging
The implementation of this bill is designed to generate additional revenue for the housing trust fund, thus enhancing the capacity to fund projects aimed at increasing affordable housing availability in the state of Arizona. The act mandates that these funds specifically prioritize projects that benefit low-income families and those living in rural areas, thereby addressing the critical need for affordable housing across various demographics and geographic locations.
House Bill 2045, also known as the FairBNB Housing Act, proposes an amendment to the Arizona Revised Statutes to impose an additional transaction privilege tax (TPT) on entities engaged in the online lodging marketplace. Specifically, this tax is set at the rate of sixteen and one-half percent of the tax base for those who have registered or obtained a license to collect tax from the state. The proceeds from this additional tax are to be deposited into the housing trust fund, which supports housing opportunities for low and moderate-income households and affordable housing programs.
However, the legislations may lead to contentious discussions around the impact of increased taxation on the online lodging market. Proponents of the bill argue that the additional tax burden on online platforms like Airbnb will be offset through direct beneficial contributions to local housing projects. Conversely, opponents may raise concerns that such taxes might deter investment in the local lodging market or lead to increased prices for consumers, ultimately impacting the tourism sector in Arizona.