Airbnb, VRBO Vacation Rentals Face Sales Tax in Cuomo Budget (1)

New York Governor Andrew Cuomo proposed levying sales taxes on vacation rentals offered through companies such as Airbnb Inc. and Expedia Group’s VRBO as part of his $193.3 billion budget for the fiscal year starting April 1.

The vacation-rental providers, who are siphoning tourists from hotels, would collect the tax, easing burdens for individuals that rent their residences. Rentals in New York City would also pay a $1.50 hotel fee.

The proposal “would level the playing field for New York’s hotel operators that compete with vacation rental marketplaces that do not collect tax on vacation rentals,” according to a ...