LA TIMES- Airbnb strikes deal with L.A. to collect millions in lodging taxes- Under a newly announced deal with Los Angeles city officials, Airbnb will soon start collecting lodging taxes from rental hosts, providing millions of dollars in revenue to the city annually.
This is a BIG deal when it comes to Airbnb legalization in California. Currently, there is a lot of debate and talk about how cities such as L.A and San Francisco are going to deal with laws governing Airbnb. San Francisco, where Airbnb calls home, is currently in talks that could fine the sharing economy giant for not complying to the current short-term rental laws.
With this new deal Los Angeles is moving forward with a tax deal even though the current law prohibits rentals for less than 30-days. The city decided to proceed with the deal, even though the law does NOT yet legalize short-term rentals for less than 30 days at a time, so they can start receiving the more than $5 Million in tax revenue projected for the year. This money was planned for in the cities budget and is going to programs for the homeless. Airbnb predicts the tax revenue from the deal could be as high as $20 Million in the upcoming year.
This deal shows the direction law makers and local governments are moving towards in regards to the sharing economy. At MetroButler we are hoping NYC lawmakers take notice and can start being sensible when it comes to rules and regulations for the sharing economy.