United Kingdom
United States
Asia Pacific
Airbnb to start collecting room tax in San Francisco
The city of San Francisco could gain by $11 million a year when Airbnb begins collecting taxes from customers who book rentals starting next month, according to an estimate by SF Gate.
The short-term rentals giant, worth a reputed $10 billion said yesterday it will begin collecting transient occupancy tax from October 1, but did not clarify whether it will pay back taxes back-dated from the six years it has been operating.
"Our community members in San Francisco have told us they want to pay their fair share and the overwhelming majority have asked us to help," wrote David Owen, Airbnb head of public policy in a company blog post.
"In the past, it’s been difficult for individual hosts to pay taxes that were designed for traditional hotels that operate year round," he added.
On the Airbnb booking platform an extra item will be displayed on the booking page highlighting the 14% tax to pay.
San Francisco-based Airbnb has also agreed to start paying tax in Portland, Ore and in New York.
San Francisco Treasurer Jose Cisneros says Airbnb and other similar booking platforms have the same obligations as hotels to collect and remit taxes.
"Some people feel, ‘I’m not a hotel, I’m simply a homeowner,’ but if you have a transient occupy your space for a rental amount, it doesn’t matter whether you or your guests consider yourself a hotel, you must remit the transient occupancy tax," he said.
San Francisco’s 34,000 hotels rooms generated $310 million in hotel taxes during the 2013-14 tax year.
Related News Stories:
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
Kittipong Prapattong’s Plan for Thailand’s Tourism Growth: Taxes, Visas, and Campaigns
James Jin: Didatravel’s Journey from China to Global Reach and the Impact of AI on Travel
Darien Schaefer on Pensacola’s Evolution: From Small Town to Global Destination
Florida Tourism’s Next Frontier: Dana Young on Expanding Beyond the Classics
Patrick Harrison on Tampa Bay Tourism’s Resilience and Marketing Strategy
Bubba O’Keefe on Clarksdale’s Vibrant Music Scene
Commemorating Elvis and Embracing Tupelo’s Culture with Jennie Bradford Curlee
Craig Ray and the Expansion of the Blues Trail
Presenting Mississippi’s Cultural Trails with Katie Coats
Robert Terrell: A Journey Through BB King’s Influence
Rochelle Hicks: Celebrating Mississippi’s Musical Legacy
Exploring Jacksonville with Katie Mitura: The Flip Side of Florida
Dozens fall ill in P&O Cruises ship outbreak
Turkish Airlines flight in emergency landing after pilot dies
Boy falls to death on cruise ship
Protestors now targeting Amsterdam cruise calls
Unexpected wave rocks cruise ship