Hotels. bed 8 breakfasts and other transient accommodation must pay harmonized sales tax (HST. 13%) on transactions only if they collect over 530.000 per year which is the same as transactions for other goods and services. 

Anyone who collects rental income, including short-term rental operators, are required to report this income and pay the appropriate Income tax. In February 2016, the Ontario Ministry of Finance launched a pilot project to work with Alrbnb and the Canada Revenue Agency to raise awareness about homeowners' and consumers' rights and responsibilities when operating and using short-term rentals. The three groups collaborated on a website informing short-term rental operators about tax obligations, consumer protection rights, accessibility requirements and other regulatory and safety obligations. 

Municipal issues related to short-term rentals in Toronto 

A number of issues have been raised by Executive Committee, residents, stakeholders and the media regarding potential impacts of short-term rentals on communities. These issues are grouped into four categories. Of the three categories of short-term rentals raised above, it Is likely that short-term rentals that occur In non-primary residences and when the operator is not present pose the risk of causing neighbourhood issues. 

Neighbourhood impacts 

Shorts-term rentals have been said to contribute to the economy of neighbourhoods that tourists do not traditionally visit. Concerns have been raised about short-term rentals changing the character of neighbourhoods or condominium communities by increasing The nrrn. ; r o short-ter s a a g the number of longer-term resieents. There have been concerns about nuisance issues, like noise, and safety issues for consumers and neighbours. Of the three categories of short-term rentals raised above. It is likely that short-term rentals that occur in non-primary residences and when the operator is not present pose the risk of causing neighbourhood issues.

Impact on housing availability and affordability 

Some argue that operating a short-term rental is a low-cost And flexible way for residents to make additional income, making it easier for them to pay their mortgage or rent. 

Concerns have been raised about the impact of short-term rentals on housing availability and affordability. Some assert that units are being removed from the permanent rental market for residents and converted to short-term rentals, reducing the availability of rental housing in a market that already has a low vacancy rate (1.6% in fall of 2015) and where there has not been a significant increase in rental supply. Some also assert that short-term rentals are contributing to increases in market rent and the cost of buying homes in Toronto. A study by the Canadian Centre for Policy Alternatives from September 2016 examined the growth of Airbnb in three downtown neighbourhoods and found that there is a high concentration and growth of Alrbnb listings, and operators with more than one listing, in these neighbourhoods. They