Airbnb has signed an agreement with city officials in Los Angeles that it will remit 14% lodging taxes on behalf of its hosts as it did in San Francisco, Portland and Newark, from August.

Los Angeles is Airbnb’s second largest market in the US, and city officials hope to generate tax revenues of at least $5m annually. The new law on short-term rentals, which has yet to receive final approval, would legalise rentals for up to 90 days per year, as long as platforms like Airbnb, HomeAway, and FlipKey provide the city with information about the hosts, their addresses and details about the rental income. Hosts face fines for non-compliance, as do the platforms.

Los Angeles will be the site of Airbnb’s annual convention, Airbnb Open, in November.

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