Airbnb to start collecting room tax in San Francisco

Thursday, 18 Sep, 2014 0

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.



 

profileimage

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.



Most Read

Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know

Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham

Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago

Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research

Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact

Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference

Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role

Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal

Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination

Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness

Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future

Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
TRAINING & COMPETITION
Skip to toolbar
Clearing CSS/JS assets' cache... Please wait until this notice disappears...
Updating... Please wait...