First Amazon, now Airbnb: Online service to begin collecting state sales tax

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Springfield, MO One of the perks of online shopping used to be the ability to purchase without paying sales taxes. That is changing as more companies voluntarily begin collecting and remitting those taxes.

Airbnb is like Uber. But, instead of hailing a ride, you can hail a room or a house.

The online service allows property owners to rent out an extra room or entire house- usually for a short time. Travelers go online and book it. But, like a lot of online services, the company doesn't have to collect city or state or city taxes. That means those local governments lost revenue when people chose Airbnb instead of "brick-and-mortar" hotels, motels and bed and breakfasts- which do collect the taxes.

Starting February 1, the company says it will begin collecting and remitting sales taxes, and in many instances, county and hotel-motel taxes. That could result in more than one million dollars that will now be going to the state.

The move is also a win for brick and mortar lodging places, which has claimed not having to collect taxes was giving the online service and unfair pricing advantage.

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