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Taxation of short-term rentals: Evidence from the introduction of the “Airbnb tax” in Norway

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  • Garz, Marcel
  • Schneider, Andrea

Abstract

This research note investigates the impact of a rental-income tax on hosts using Airbnb in Norway. We find that the cost increase implied by the tax did not induce hosts to exit the platform, nor did it lead to an increase in rental prices. These findings support the conjecture that the tax was insufficiently enforced, as it relied on taxpayers to self-report their rental income.

Suggested Citation

  • Garz, Marcel & Schneider, Andrea, 2023. "Taxation of short-term rentals: Evidence from the introduction of the “Airbnb tax” in Norway," Economics Letters, Elsevier, vol. 226(C).
    • Handle: RePEc:eee:ecolet:v:226:y:2023:i:c:s0165176523001453
    DOI: 10.1016/j.econlet.2023.111120
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    References listed on IDEAS

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    1. Andrew J. Bibler & Keith F. Teltser & Mark J. Tremblay, 2021. "Inferring Tax Compliance from Pass-Through: Evidence from Airbnb Tax Enforcement Agreements," The Review of Economics and Statistics, MIT Press, vol. 103(4), pages 636-651, October.
    2. Garz, Marcel & Schneider, Andrea, 2023. "Data sharing and tax enforcement: Evidence from short-term rentals in Denmark," Regional Science and Urban Economics, Elsevier, vol. 101(C).
    3. Wei Chen & Zaiyan Wei & Karen Xie, 2022. "The Battle for Homes: How Does Home Sharing Disrupt Local Residential Markets?," Management Science, INFORMS, vol. 68(12), pages 8589-8612, December.
    4. Koster, Hans R.A. & van Ommeren, Jos & Volkhausen, Nicolas, 2021. "Short-term rentals and the housing market: Quasi-experimental evidence from Airbnb in Los Angeles," Journal of Urban Economics, Elsevier, vol. 124(C).
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    1. Garz, Marcel & Schneider, Andrea, 2023. "Data sharing and tax enforcement: Evidence from short-term rentals in Denmark," Regional Science and Urban Economics, Elsevier, vol. 101(C).

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