Airbnb pays off millions in back taxes to San Francisco
Airbnb has finally settled its long standing tax bill with the city of San Francisco.
Airbnb said it paid ‘in full’ outstanding taxes dating back several years although it disputed the amount.
"Two weeks ago, the Treasurer’s Office told us what they thought was owed in back taxes. Though we have concerns about this assessment — the tax rules in San Francisco are unique and the subject of ongoing litigation brought by other companies that we are closely monitoring — we have paid it in full," a company statement said.
San Francisco District Supervisor David Campos called it a ‘major victory,’ saying the amount was in the ‘tens of millions.’
However Campos still had a subtle swipe at the short term rental site.
"We are glad they did this, but I don’t know if congratulations are in order for someone who paid their taxes three years late," he said.
The city charges 14% bed tax and once estimated $25 million was owed in back taxes.
Airbnb still faces tax liability in several other US cities, notably New York City.
Lawmakers in the Big Apple are concerned not only over unpaid taxes but also the impact on affordable housing stock.
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.
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