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New York

Airbnb CEO asks Albany to tax its users

From left: Airbnb founders Nathan Blecharczyk, Joe Gebbia and Brian Chesky
From left: Airbnb founders Nathan Blecharczyk, Joe Gebbia and Brian Chesky

The CEO of popular short-term apartment rental site AirBnB has asked the state government in Albany to tax those who use the service rather than ban it outright. The proposal comes just a week after AirBnB won a big victory in court when a case against an East Village resident, who was originally given a $40,000 fine for renting out his apartment using the site, was overturned.

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“Our hosts are not hotels but we believe that it makes sense for our community to pay [hotel] occupancy tax, with limited exemptions for those who earn under certain thresholds,” CEO Brian Chesky wrote in a blog post on AirBnB’s website seen by the New York Daily News.

An association of hotel owners is mulling a class action lawsuit against the site, alleging unfair competition. [NYDN] — Hiten Samtani

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