Advertisement

LA reaches deal with Airbnb over lodging taxes

By Shawn Price

LOS ANGELES, July 19 (UPI) -- Los Angeles became the latest major American city to reach a deal with short-time rental company Airbnb over lodging taxes, bringing millions of dollar to city coffers. At the same time, the city has yet to actually legalize short-term rentals.

The deal, similar to what the company has already established in San Francisco and elsewhere, gives the city a way to collect lodging taxes they have been unable to collect for years and monitor who's really renting out their properties.

Advertisement

"These agreements allow cities to rightfully benefit in the economic impact of home sharing while also making it easier for Airbnb hosts, ­the vast majority of whom are middle class people sharing their own home, to comply with local tax laws," John Choi, Airbnb's public policy manager for the Los Angeles area said in a statement. "We are pleased that this process is moving forward and will benefit Angelenos."

The deal goes into effect in August, and is expected to provide about $5 million in new revenue that the city will use to pay for homeless programs.

"The hosts are required to pay that tax," said City Administrative Officer Miguel Santana. "We're simply creating a mechanism to facilitate that."

Advertisement

Latest Headlines