TPT; additional rate; online lodging
The enactment of HB2135 could significantly bolster financial resources available for housing projects aimed at low and moderate-income Arizonians. The additional funds directed to the housing trust fund will assist in developing necessary housing facilities, particularly in rural areas, where there is a pronounced need for affordable housing options. Additionally, these funds may enhance support services for vulnerable populations, including those facing chronic mental health challenges.
House Bill 2135, known as the 'FairBNB Housing Act', aims to introduce an additional transaction privilege tax specifically targeting the online lodging marketplace in Arizona. This law mandates that online lodging providers, who register with the state's Department of Revenue, will be subject to a tax rate of sixteen and one-half percent on their transaction base. The revenue generated from this tax is intended to be redirected into the state's housing trust fund, which supports housing initiatives and affordability programs for low and moderate-income households.
Despite the potential benefits, the bill has sparked discussions regarding its implications on local businesses operating in the online lodging sector. Some stakeholders argue that the new tax might lead to increased costs for consumers and could place a burden on local hosts who rely on this income. There are concerns about whether the added financial pressure might deter informal lodging and tourism services, potentially affecting local economies adversely. Moreover, the necessity of a two-thirds vote for the bill's enactment adds a layer of complexity to its successful implementation.