Airbnb has made a deal with Los Angeles to start collecting lodging taxes, a move that could equal millions in annual revenue for the city.
There’s already a law on the books that requires hosts to pay lodging taxes, but according to the L.A. Times, it’s been difficult for the city to enforce the rule and make hosts pay. Now Airbnb will serve as the collector, taking the fee from hosts off the top when guests book. It’s not a new fee for hosts, but a new way of collecting it. Also worth noting: in many parts of L.A. it’s currently illegal for anyone to rent out a private residence for less than 30 days, which means many Airbnb hosts are breaking the law. The city is currently considering legalizing Airbnb-type rentals.
The deal goes into effect this August. Los Angeles plans to use some of the funds to help pay for programs to end homelessness.