Send this page to someone via email

Share this item on Twitter

Share this item via WhatsApp

Share this item on Facebook

Airbnb and the province of Quebec have announced what is being called a first tourist tax agreement on short-term rentals in Canada.

READ MORE: Doubts raised over Quebec’s legislation regulating Airbnb-type rentals

Quebec Tourism Minister Julie Boulet and officials with the Canadian arm of the home-sharing platform made the agreement official Tuesday.

Beginning Oct. 1, Airbnb will automatically collect and remit a 3.5 per cent lodging tax on bookings.

READ MORE: Quebec government to legalize Airbnb

Airbnb’s Alex Dagg says the deal is a first for a Canadian jurisdiction and she adds it underlines just how the company and a province can work in tandem.

WATCH BELOW: Cracking down on Airbnb

Story continues below advertisement

The company says nearly one million people used the service in Quebec in the last year alone and it estimates the province would have recouped $3.7 million in 2016 had the tax been in place.

READ MORE: Airbnb regulations in Quebec won’t necessarily mean same approach across Canada

Quebec implemented a law in April 2016 regulating properties on Airbnb and other home-rental websites.