Between August 1, 2016 and July 31, 2017, hosts in the Los Angeles Airbnb community generated nearly $40 million in taxes as a result of the voluntary tax collection agreement Airbnb reached with the City of Los Angeles.
This agreement allows Airbnb to collect and remit a 14 percent lodging tax on behalf of hosts. Airbnb paid nearly $40 million in taxes to the City of Los Angeles—more than $3 million per month. Some key facts about the LA community in Los Angeles:
The revenue generated by this tax collection agreement has given city officials the resources and flexibility to fund key community programs and initiatives. Los Angeles Mayor Eric Garcetti designated $5 million for affordable and low-income housing initiatives aimed at tackling the serious homelessness problem, including allocating funds for “rapid rehousing” programs. The additional $35 million helped the City pay for things like more police officers and firefighters, street repaving, and trash removal for LA neighborhoods.
“Our community is made up of proud Angelenos who are excited to be paying their fair share in taxes, contributing valuable revenue to the City of Los Angeles, and supporting the city’s economic well-being,” said John Choi, Airbnb’s Southern California Public Policy Manager.
“We look forward to working with LA lawmakers, as we did on the tax agreement, to develop fair home sharing rules that promote economic empowerment and strengthen our neighborhoods.”