Airbnb will begin collecting the hotel tax from its hosts in LA

Los Angeles /
Jul.July 19, 2016 08:30 AM

Short-term home rental platform Airbnb will start collecting lodging tax from its hosts under a three-year deal with the city of Los Angeles, officials announced Monday. 

The deal, negotiated with L.A. budget and tax officers, could generate up to $6 million for the city annually. Airbnb will collect the lodging tax from its rental hosts starting August 1.

Hosts have always been obligated to pay hotel tax under L.A. law, but tax officials had no way to tracking them down or enforcing the law. The agreement with Airbnb will facilitate that process Airbnb already has similar agreements with cities such as San Francisco, Portland, and Newark, New Jersey.

Both the city and Airbnb praised the pact.

“Our community of hosts wants to pay their fair share and we want to help,” John Choi, Airbnb public policy manager for Southern California, told the L.A. Times in a written statement.

The agreement does not legalize short-term rentals, according to top budget official Miguel Santana.

The City council is now considering a set of regulations that would effectively make them legal within restrictions, such as the number of days that a room or a home could be listed. The proposal also requires hosts to register with the city and subjects them to steep fines if they fail to do so.

Santana told the Times that the latest tax agreement with Airbnb can be tweaked or revoked as soon as the city adopts new policies regulating short-term rentals. [LAT]Cathaleen Chen


Related Articles

arrow_forward_ios
1724 Highland Avenue (Redwood Urban)1724 Highland Avenue (Redwood Urban)

Lawsuits allege Airbnb guests ran rampant at Hollywood apartment complex

Lawsuits allege Airbnb guests ran rampant at Hollywood apartment complex
The party mansion at 1120 Sierra Madre Avenue, Glendora, Los Angeles (Credit: AirBnb and Google Maps)

Airbnb sues LA “party promoter” for throwing “mansion parties”

Airbnb sues LA “party promoter” for throwing “mansion parties”
Brian Chesky (Credit: Richard Bord/Getty Images, Airbnb, and iStock)

Airbnb sues booking guest over unauthorized house party

Airbnb sues booking guest over unauthorized house party
Brian Chesky (Credit: Kimberly White/Getty Images)

Airbnb has thousands of unregistered listings in LA, city charges

Airbnb has thousands of unregistered listings in LA, city charges
Eric Garcetti

California urbanites flee cities amid coronavirus, despite warnings and orders to stay put

California urbanites flee cities amid coronavirus, despite warnings and orders to stay put
Coachella Valley (Credit: Mario Tama/Getty Images)

Coronavirus hits seasonal Coachella Valley tourist economy hard

Coronavirus hits seasonal Coachella Valley tourist economy hard
It’s harder these days to find a short-term stay in L.A.

L.A. short-term rental inventory has plunged in last four months

L.A. short-term rental inventory has plunged in last four months
An illustration of Airbnb's Chief Executive Brian Chesky

Los Angeles No. 1 in country for Airbnb, other short stay rentals

Los Angeles No. 1 in country for Airbnb, other short stay rentals
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...