Airbnb collects and remits nearly $30 million in taxes to the City of San Diego

 In News

Airbnb, the world’s leading community-driven hospitality company collected and remitted over $13.8 million in tax revenue to the city of San Diego on behalf of its hosts from July 1, 2017 to June 20, 2018.

In 2015, Airbnb partnered with the City of San Diego to collect and remit the 10.5 percent Transient Occupancy Tax (TOT) for guests who book Airbnb listings in San Diego.  Since then, Airbnb has collected and remitted more than $29.5 million to the city. According to the City of San Diego, the tax collected from short-term rentals totaled more than $20 million in 2017, accounting for about 9.1 percent of the total TOT tax receipt.

In San Diego, the Transient Occupancy Tax goes directly to the City’s general fund to pay for city services like parks, public safety, libraries, and road improvement. These are services all residents use, whether they short term rent a property or not.

“Airbnb is proud to help our hosts contribute valuable tax revenue to the city of San Diego,” said Laura Spanjian, Airbnb Public Policy Director for San Diego. “Tourism is an integral part of San Diego and an important industry in the region – something that vacation rentals help keep alive. Collecting and remitting TOT taxes ensures vital funding goes right back into the community and we’re excited to help our hosts pay their fair share.”

Rules for collecting and remitting hotel taxes are complicated and were designed for traditional hospitality providers and large hotel corporations with teams of lawyers and accountants. For this reason, Airbnb has partnered with over 400 governments throughout the world to collect and remit taxes, making the process seamless and easy for hosts while contributing new revenue for jurisdictions.

“Short Term Rentals help bolster the San Diego economy by promoting tourism spending and bringing millions of dollars into the City through Transient Occupancy Taxes that support vital City services San Diegans rely on. To put this in perspective, we could pay more than 300 firefighters or police officers with the $20.5 million that Short Term Rentals brought in tax revenues last year,” said Haney Hong, president and CEO, San Diego County Taxpayers Association.

 

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