Worthwhile endeavour

Worthwhile endeavour

Finance Minister Marinka Gumbs during the handling of the revised 2025 budget confirmed that Airbnb is reluctant (see related story) to make any revenue-withholding and data-sharing agreement with government unless there is legislation making such mandatory for all short-term vacation rentals in St. Maarten. The company fears an unfair disadvantage in competing with similar platforms.

The argument is a sound one, especially considering the large number of other less-well-known operators in the market. The minister pointed out that 5% room tax must already be paid, but admitted enforcement disproportionally affects local compared to foreign providers who are often harder to track down and usually not among the country’s registered tax-payers.

Perhaps the time has indeed come for a separate law to regulate and tax this type of activity. Even if control and supervision present challenges, convincing – for example – Airbnb and VRBO alone to come onboard could produce significant additional income.

Moreover, it would help level the playing field with more traditional visitor accommodations expected to be fully fiscally compliant. Quickly drafting such a bill might thus well prove a worthwhile endeavour.

The Daily Herald

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