Deal hit with Airbnb on tax remittance

An agreement has been reached with the city’s Advertising and Promotion Commission for Airbnb to remit taxes for the rental of private residences to visitors staying in the city.

Airbnb Inc. of Delaware, a major online broker for shortterm home rentals to vacationers, has voluntarily agreed to facilitate the reporting, collection and remittance of applicable “transient occupancy taxes” payable to the Advertising and Promotion Commission, according to the collection agreement entered into by both parties in June.

The City Council approved legislation two years ago to make short-term vacation rentals of residential homes and apartments in the city subject to the lodging tax and to require a city business permit, but at a vastly reduced rate.

Bob Major, chief executive officer for the Convention and Visitors Bureau, which the commission oversees, told commissioners at their quarterly meeting last week that shortterm home rentals and the collection of accompanying taxes have been “an issue all over the country.”

Several cities, including New York, San Francisco, San Diego and New Orleans, have placed new regulations and restrictions on short-term home rental services.

“Whether they say they are or not, they are acting like a hotel,” Major said of the services.

There are about 12 known Airbnb properties in the city, Major said. Airbnb agreed to collect and remit the taxes on behalf of its hosts on all taxable booking transactions and is to notify hosts of the tax responsibility and guests of the taxes to be collected, the agreement said.