Island of Oléron Takes On Multinational Companies like Airbnb and Booking in a Battle for Local Control
French Court Rules in Favour of Île d'Oléron Community Against LeBonCoin
In a landmark decision, the La Rochelle Judicial Court has ruled in favour of the Île d'Oléron Community of Communes (CDCIO) in a dispute with online classifieds platform LeBonCoin. The dispute centres around the collection of tourist tax linked to short-term rental listings on the platform.
Background
The Île d'Oléron, a popular tourist destination off the west coast of France, levies a tourist tax on short-term rentals to finance local services used by visitors. Typically, rental platforms like LeBonCoin are expected to help collect and remit this tax on behalf of hosts.
Dispute and Legal Proceedings
The CDCIO claimed that LeBonCoin failed to properly collect and transfer the tourist tax for properties rented through its site, leading to a significant shortfall in expected tax revenues. The CDCIO argued that, under French law, platforms facilitating short-term rentals have a responsibility to collect and remit this tax directly or provide detailed data on hosts to local authorities.
LeBonCoin contested this, either disputing their obligation to collect the tax themselves or the methodology used by the CDCIO for assessing the owed amounts. However, the court ruled in favour of the CDCIO, establishing that platforms like LeBonCoin bear responsibility to assist in the collection of tourist taxes, either by collecting the sums directly or by sharing relevant rental data with local authorities.
Ruling and Impact
The judgement orders LeBonCoin to pay a total of 410,000 euros to the CDCIO. This ruling sets a precedent for other French municipalities seeking to enforce tourist tax collection from digital platforms. It underscores local authorities' rights to receive due taxes and places greater compliance obligations on rental listing platforms.
LeBonCoin has expressed concern over the fines, stating they seem disproportionate to the facts. No decision has been made regarding a possible appeal by LeBonCoin. The judgement was announced on Monday, August 4, and pertains to transactions that occurred on Île d'Oléron during the summers of 2020, 2021, and 2022.
LeBonCoin, a French company that provides classified ads services, including connecting property owners with vacationers for online payment, similar to Airbnb or Booking, has yet to comment on whether they will appeal the ruling. The judgement was obtained by Liberation, and LeBonCoin's reaction to the judgement was reported by the same publication. The judgement reinforces the legal framework around short-term rental platforms’ obligations in France regarding local taxes.
- In light of the court ruling, LeBonCoin, a French business specializing in classified ads, is now obligated to assist in the collection of tourist taxes for the Île d'Oléron community, either by collecting the sums directly or by sharing relevant rental data with local authorities.
- The financial implications of this decision are significant for LeBonCoin, as they have been ordered to pay a total of 410,000 euros to the Île d'Oléron Community of Communes (CDCIO), setting a precedent for other French municipalities seeking to enforce tourist tax collection from digital platforms.
