BURLINGTON — Starting next year, short-term rental company Airbnb will take responsibility for collecting and remitting the city’s gross receipts tax, a job that previously fell to individuals renting out their homes through the online service.

Earlier this year, Vermont entered into an agreement with Airbnb requiring it to collect and pay the state’s gross receipts tax from hosts who use its platform for short-term rental transactions.

The state purposely left Burlington and Rutland out of that deal, because they collect their own municipal gross receipts tax. Vermont’s deal with Airbnb did require that the tech company reach similar agreements with both cities.

In November, Burlington reached its own deal with Airbnb on similar terms to the deal made by Vermont, and it will take effect in January.

An Airbnb spokesman told the Burlington Free Press that there are 300 active hosts in the Queen City who rented to 23,000 people last year. Hosts typically make $6,300 annually.

City officials said that currently only 20 Airbnb hosts pay gross receipts taxes generating an estimated $10,000 in revenue. The city will monitor gross receipts revenue from Airbnb in the first half of the year while preparing the upcoming budget, but a preliminary estimate put the additional revenue from the new arrangement as high as $30,000.

The city is still exploring how and whether it should create a permit and regulatory system for short-term rentals, and considering how to tackle zoning issues such as the presence of short-term rentals in predominantly residential districts.

Morgan True was VTDigger's Burlington bureau chief covering the city and Chittenden County.