Airbnb to pay San Francisco hotel tax

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(AP)

Online home rental service Airbnb has agreed pay San Francisco’s 14 percent hotel tax.

The San Francisco Chronicle reported Monday (http://bit.ly/PdJPhD ) that under the plan, Airbnb would collect taxes directly from guests as an extra charge on their bill – the same way hotels do. For example, a guest staying in a $100-per-night Airbnb room would pay an extra $14 a night.

The San Francisco-based company, which connects travelers with people renting out their homes, says it will begin remitting taxes to the city by the summer.

The newspaper says the move could potentially add millions to city coffers and help Airbnb avoid conflict with regulators – especially if the company seeks to go public.

Out of the 32,000 cities worldwide where Airbnb operates, San Francisco and Portland, Ore., would be the first ones where it collects hotel taxes.

(Copyright 2014 Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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