20 Jul Los Angeles makes Airbnb a revenue generating partner as opposed to Miami Beach which considers it an illegal nuisance
By Ross Milroy | Jul 20, 2016
In the ongoing battle between Airbnb, hoteliers and municipalities across the country, Los Angeles has finalized a policy decision that will hopefully serve those seeking alternative lodging while pumping much needed tax revenue into local economies.
Airbnb will now automatically collect hotel taxes from users of its booking platform and remit them to Los Angeles on behalf of its hosts.
Beginning this August, LA will join 190 other cities who have recently agreed to this policy. While this does not solve the issue of legalizing short-term rentals, nor does it satisfy hotelier’s complaints of revenue loss, it does quell the financial aspect of these rentals operating tax-free.
With any luck, or constructive political foresight, Miami Beach will soon follow suit, hopefully followed by amendment of restrictions that currently make such rentals illegal throughout a majority of the city.
Read more from Fortune article here: Airbnb strikes deal with L.A. to collect millions in lodging taxes