House Bill 24-32 Aims to Regulate Airbnb Tax Collection in CNMI
October 07, 2025 | Senate, Northern Mariana Legislative Sessions, Northern Mariana Islands
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The Northern Marianas Commonwealth Legislature convened on October 7, 2025, to discuss significant legislative measures regarding tax collection from short-term rental platforms, particularly Airbnb. A key point of discussion centered on the need for a bill that would allow third-party platforms to collect and remit taxes on behalf of the Commonwealth, a practice currently prohibited by existing law.
During the meeting, a legislator highlighted that a major hosting platform was prepared to sign an agreement with the Department of Finance to facilitate tax collection. However, due to legal restrictions, the platform's team decided to pause until the proposed bill is passed. This situation reflects a broader trend, as many jurisdictions in the U.S. and worldwide have successfully implemented similar measures to ensure compliance and tax collection from vacation rentals.
The legislator pointed out that the short-term rental industry has evolved significantly, with estimates suggesting that there were once around 500 operators in the Commonwealth. Currently, that number has dwindled to approximately 100 or fewer, many of whom are not contributing to hotel occupancy taxes. This has resulted in a perceived unfair system where tourists benefit from the islands without paying their fair share, leading to financial shortfalls for the Marianas Visitors Authority and local municipalities.
The discussion emphasized the urgency of passing the bill to close this loophole, with estimates indicating that the Commonwealth may have missed out on tax revenues ranging from $1 million to $8 million in previous years. The legislator expressed strong support for the bill, noting that its passage is crucial for ensuring that all operators contribute to the local economy.
In conclusion, the meeting underscored the importance of legislative action to modernize tax collection practices for short-term rentals, which could significantly enhance revenue for the Northern Mariana Islands. The proposed bill is now positioned for further consideration, with hopes for swift approval to address the ongoing tax compliance issues in the tourism sector.
During the meeting, a legislator highlighted that a major hosting platform was prepared to sign an agreement with the Department of Finance to facilitate tax collection. However, due to legal restrictions, the platform's team decided to pause until the proposed bill is passed. This situation reflects a broader trend, as many jurisdictions in the U.S. and worldwide have successfully implemented similar measures to ensure compliance and tax collection from vacation rentals.
The legislator pointed out that the short-term rental industry has evolved significantly, with estimates suggesting that there were once around 500 operators in the Commonwealth. Currently, that number has dwindled to approximately 100 or fewer, many of whom are not contributing to hotel occupancy taxes. This has resulted in a perceived unfair system where tourists benefit from the islands without paying their fair share, leading to financial shortfalls for the Marianas Visitors Authority and local municipalities.
The discussion emphasized the urgency of passing the bill to close this loophole, with estimates indicating that the Commonwealth may have missed out on tax revenues ranging from $1 million to $8 million in previous years. The legislator expressed strong support for the bill, noting that its passage is crucial for ensuring that all operators contribute to the local economy.
In conclusion, the meeting underscored the importance of legislative action to modernize tax collection practices for short-term rentals, which could significantly enhance revenue for the Northern Mariana Islands. The proposed bill is now positioned for further consideration, with hopes for swift approval to address the ongoing tax compliance issues in the tourism sector.
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