Dalir, S., Mahamadaminov, A. and Olya, H.G.T. orcid.org/0000-0002-0360-0744 (2021) Airbnb and taxation: Developing a seasonal tax system. Tourism Economics, 27 (2). pp. 365-378. ISSN 1354-8166
Abstract
This study applies tax planning theory to develop a seasonal tax strategy as an alternative to a fixed tax rate for shared lodging platforms such as Airbnb, to increase hosts’ revenue and to address seasonality in tourism. The annual revenue of the various types of accommodation is used to calculate a seasonality index by the moving average method, which is incorporated as a corrected coefficient in a seasonal tax formula. The sample includes data from 1258 active Airbnb listings in Boston, Massachusetts. Using a mean comparison test, this study reveals that the application of a seasonal tax strategy significantly increases the revenue of Airbnb hosts compared to a fixed tax rate system. Drawing on the flexibility tenet of tax planning theory, policymakers can use the proposed seasonal tax strategy as an instrument to revisit the taxation system for sharing economy businesses based on changes to the socio-economic, environmental and political conditions. Implications for all stakeholders are discussed.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2020 The Author(s). This is an author-produced version of a paper accepted for publication in Tourism Economics. Uploaded in accordance with the publisher's self-archiving policy. Article available under the terms of the CC-BY-NC-ND licence (https://creativecommons.org/licenses/by-nc-nd/4.0/). |
Keywords: | Airbnb; peer-to-peer accommodation; revenue management; seasonality; tax |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Management School (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 24 Feb 2020 10:13 |
Last Modified: | 06 May 2021 15:56 |
Status: | Published |
Publisher: | SAGE Publications |
Refereed: | Yes |
Identification Number: | 10.1177/1354816620904894 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:157592 |