Airbnb will begin collecting tourist taxes later this month directly from San Diego’s visitors on behalf of its hosts.
Previously, Airbnb hosts were expected to collect the 10.5 percent transient occupancy tax, as well as the 0.55 percent tourism marketing district tax and remit it to the city of San Diego on their own. That didn’t always happen.
On July 15, after the Comic-Con International convention, the popular short-term vacation rental service will include that amount on its bills to guests.
The move comes after Airbnb and the city of San Diego agreed on a tax collection program, ending issues that arose because many hosts failed to charge the tax. The change comes as the city is still trying to figure out rules for short-term rentals. Currently there is nothing in the municipal code that clearly defines a short-term rental, although there are regulations that govern bed-and-breakfasts, board-and-lodging dwellings and rooming houses.
Airbnb also collects taxes in Portland, San Francisco, Chicago, Washington, D.C., Amsterdam and the nation of .
“Airbnb is focused on making neighborhoods better places to live and visit — and part of that includes working with lawmakers to reach solutions that allow our community to pay their fair share while enabling people to share their homes,” Airbnb said in a statement. “While there are still issues that require clarification in the city’s code, we felt it important to voluntarily collect and remit on behalf of our hosts in San Diego. We are excited that San Diego s the growing list of cities embracing home sharing and look forward to continuing the conversation with local officials.”
Compliance has been an issue for the city, with Treasurer Gail Granewich saying in March that the city was trying to provide clearer guidance on its website. At the time, the treasurer’s office reported that it had sent out more than 250 letters to short-term rental property owners informing them of the need to their residences and pay the hotel taxes, including back taxes and fines of as much as 25 percent.
Granewich said in a statement Thursday that this is a positive development but that there are still some issues to be resolved.
“We are pleased that Airbnb is taking steps to come into compliance with existing City regulations regarding future collection of transient occupancy taxes and tourism marketing district assessments,” she said. “The City will continue to seek a resolution of owed back taxes and remains in discussions with Airbnb.”
In March, a little more than half of the 187 newly ed operators had paid $105,000 in hotel taxes and related penalties. The city collected more than $5.6 million in hotel occupancy taxes from short term rentals in the last fiscal year.
Airbnb will also continue to collect its 3 percent cut for using its service.
