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

Hosts will be taxed starting August 1

TRD 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
Eric Garcetti

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

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

An illustration of Airbnb's Chief Executive Brian Chesky

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

Airbnb Chief Executive Brian Chesky in front of Los Angeles city hall (Credit: Getty Images, iStock)

A Christmas miracle? LA may loosen key Airbnb restriction

Council Member Mitch O’Farrell’s motion will not be automatically furled into Airbnb ordinance. (Credit: Getty Images, iStock, and Airbnb)

LA throws Airbnb hosts lifeline at rent-stabilized homes, but there’s a catch

The city of Los Angeles is considering allowed rent-stabilized units to be used for home shares. (Credit: Getty Images and iStock)

Last-minute policy tweak could hand Airbnb a key victory in LA

LA’s Airbnb hosts seek carveout for looming ban on renting out secondary homes

LA’s Airbnb hosts seek carveout for looming ban on renting out secondary homes

arrow_forward_ios
Loading...