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Airbnb To Start Collecting Hotel Tax On Rentals In San Francisco

An anonymous reader writes Airbnb announced that it will begin collecting a 14% occupancy tax on behalf of its San Francisco hosts October 1. "This is the culmination of a long process that began earlier this year when we announced our intent to help collect and remit occupancy taxes in San Francisco," wrote Airbnb public policy leader David Owen. The company already collects taxes in Portland, and has discussed the possibility of collecting taxes in New York.

71 comments

  1. Uber announces UberRV by Anonymous Coward · · Score: 5, Funny

    Why stay in a hotel when you can stay on the road? Now, with UberRV, you can move around and avoid any pesky taxes. The law says if you're not parked, you're not living there, or at least that's what we're claiming this week. AirBNB is old news thanks to UberRV.

    1. Re:Uber announces UberRV by Joe_Dragon · · Score: 1

      and under our new fine print if the driver get's in accident you can get sued as well.

    2. Re:Uber announces UberRV by stephanruby · · Score: 3, Informative

      and under our new fine print if the driver get's in accident you can get sued as well.

      Putting the initial joke aside, here is the actual insurance policy from Uber.

      There is actually nothing wrong with it, as far as I can tell.

    3. Re:Uber announces UberRV by stephanruby · · Score: 2

      Why stay in an RV when you could stay on a couch?

    4. Re:Uber announces UberRV by olsmeister · · Score: 0

      Because I don't want to wake up in a bathtub full of icewater missing a kidney?

    5. Re:Uber announces UberRV by Anonymous Coward · · Score: 0

      How are they identifying places to tax? What if I put my neighbor's house up there? Can I get them to tax him? LOL. Fun.

  2. 14%? What a f***ing ripoff by Anonymous Coward · · Score: 0

    Why is it so much higher than the state sales tax rate? Probably because the people that have to pay it are from out of state and therefore not CA voters.

    1. Re:14%? What a f***ing ripoff by Anonymous Coward · · Score: 0

      The sales tax rate in Oregon is 0%. It's a lot higher than the sales tax rate here.

    2. Re:14%? What a f***ing ripoff by CycleMan · · Score: 3, Interesting

      Transient Occupancy Taxes are generally higher, for exactly that reason. And note that TOTs are not normally set at the state level but instead at the city level.

    3. Re:14%? What a f***ing ripoff by Anonymous Coward · · Score: 0

      It's high up there on the reasons I'll never visit California again. It's basically a big fuck you to people you should be treating like valued guests.

    4. Re:14%? What a f***ing ripoff by alexander_686 · · Score: 1

      The fact that non-voters are paying the big is a big piece.

      Another piece is that "tourist" or "convention" taxes go back into providing services that tourist or convention goers use. Somebody has to pay to clean up the "free" beaches. The argument goes that those hotels are bars would not exist if the convention center did not exist. Or at least that is the fig leaf that is used.

    5. Re:14%? What a f***ing ripoff by SumDog · · Score: 1

      But you have an income tax right? Tennessee had no income tax but like an 8% ~ 9% sales tax

    6. Re:14%? What a f***ing ripoff by Anonymous Coward · · Score: 0

      NJ has sales taxes, 7% (food not taxed though, but beer, chocolate, gas, restaurant bill are) as well as tiered income tax rate of 9% (politically reduced to 8.97%). Plus property taxes are one of the highest in the union. Occupancy taxes are billed on hotel as well.

    7. Re:14%? What a f***ing ripoff by tomhath · · Score: 1

      Same with car rental rates. You will usually see a huge "entertainment tax" as part of the price in cities.

    8. Re:14%? What a f***ing ripoff by Anonymous Coward · · Score: 0

      We should just make N.J. a huge land fill for the entire east coast.

  3. Finally, an honest Internet company by aaronb1138 · · Score: 0, Troll

    It is really great that AirBNB is being a responsible civic citizen and charging / paying taxes which apply to their business.

    Can we go ahead and explain to Uber and Lyft that they need taxi licenses and to pay their share or gtfo.

    1. Re:Finally, an honest Internet company by Anonymous Coward · · Score: 0

      B-b-b-ut small business! Government bad! Libertarianism! /s

    2. Re:Finally, an honest Internet company by Anonymous Coward · · Score: 0

      Can we go ahead and explain to Uber and Lyft that they need taxi licenses and to pay their share or gtfo.

      Yes, because there's no corruption (with increased costs to businesses and consumers) with taxi licenses. Oh, wait...

      Does "their share" include bribes?

    3. Re:Finally, an honest Internet company by Anonymous Coward · · Score: 0

      In fact, it's good that uber is charging the fuck-you tax. that way, homeowners will start to see the negative consequences of their politicians screwing people who can't vote in the jurisdiction.

    4. Re:Finally, an honest Internet company by stephanruby · · Score: 1, Insightful

      Can we go ahead and explain to Uber and Lyft that they need taxi licenses and to pay their share or gtfo.

      Explain all you want. In some cities, taxi medallions are no longer being sold and the supply of taxis is being artificially limited.

      Personally, I live in San Francisco and I'm sick and tired of not being able to catch a cab during peak hours. So I end up have to drive my car to work and pay exorbitant parking fees whenever I have to go somewhere after work that's not easily reachable via public transportation.

      And no, I'm not black, in case you were wondering. Although, I suspect that increasing the supply of taxi-like services like Uber would solve some of that problem as well. If there is an oversupply of taxis or taxi-like services, then these taxi drivers are actually much less able to discriminate.

    5. Re:Finally, an honest Internet company by Anonymous Coward · · Score: 1

      How about AirBNB pays what they lawfully owe to other cities? I'm sure Austin, Dallas, Houston, Seattle, New York City, and many other places would like the bed taxes that they are due.

      For example, a suspected AirBNB member lives fairly near me, who has multiple townhomes that he rents out as hotel rooms. I'm sure the bed taxes collected from the daily turnover of guests (4+ per condo, 8-10 come busy weekends) would at least pay for one fireman's salary for a year.

      No wonder why the businesses who pay to be legal are so pissed.

    6. Re:Finally, an honest Internet company by spire3661 · · Score: 1

      Did it ever occur to you that these taxes and fees are straight up local robbery?

      --
      Good-bye
    7. Re:Finally, an honest Internet company by ShanghaiBill · · Score: 1

      Can we go ahead and explain to Uber and Lyft that they need taxi licenses and to pay their share or gtfo.

      False analogy. AirBNB should pay the hotel tax, because the playing field should be level. But to rent a room, you just need to pay the tax. You don't need to spend a small fortune for a "hotel license". Taxis, on the other hand, are a racket based on enforced artificial scarcity.

    8. Re:Finally, an honest Internet company by spire3661 · · Score: 0

      Why in the FUCK should VISITORS being paying for local services? Isnt the fire dept funded through property taxes? Fuck you and people like you who think its wise to tax the shit out of visitors.

      --
      Good-bye
    9. Re:Finally, an honest Internet company by Anonymous Coward · · Score: 0

      Taxis without the regulations were worse. Those who don't care about history are doomed by those who simply reapply it to dumb 'smart' people.

    10. Re:Finally, an honest Internet company by Anonymous Coward · · Score: 0

      Then do not visit and do not enjoy the nice stuff those taxes pay for. seriously, how self-entitled can you be? Their home their rules. At least you are not forced to take part in it (though you whine as if you were)

    11. Re:Finally, an honest Internet company by Anonymous Coward · · Score: 0

      No one is forcing you to visit or get the benefits that having a city not on fire/not crime ridden brings. If the idea of going to Disney and your favorite ride being on fire, or going to a stadium and finding people mugging everyone as they walk in appeals to you then keep rejecting taxes, but as a guest to a town in these UNITED states it's still your duty to pitch in when you get said benefits of civilization. Sick of civilization? Leave America. I hear Somalia is nice this time of year and won't tax you.

  4. How long is rent going to go up before?dun dun dun by GoodNewsJimDotCom · · Score: 0

    How long until companies realize they can save 15,000-30,000 on paying their software engineers that telecommute. It is silly to require a programmer to be on site anyway. You gain some extra time out of him each day because he doesn't have to commute, and less distractions mean you get more productivity. If you don't trust your coders to do work, just set up a version control repository and make sure some stuff is done each day.

  5. Re:How long is rent going to go up before?dun dun by AuMatar · · Score: 4, Insightful

    Because face time is important. Interacting with coworkers is important. Being able to go over a design at a whiteboard together rather than reading the same powerpoint slide separately is important. THe best ideas I've had in my career have been created as a result of talking to my coworkers over lunch/coffee break/tangent from another discussion. Telecommuting is a loss to productivity even if they are perfect about actually working (which having done it for a year- its not an easy thing to do, there's a lot of temptations). Its not only easily worth 15-30k, its worth 2-3 times that to have then onsite. That's ignoring the fact that a large number of people won't be on point when working from home- many without even meaning to cheat the system.

    --
    I still have more fans than freaks. WTF is wrong with you people?
  6. Re:How long is rent going to go up before?dun dun by sexconker · · Score: 2

    Because face time is important. Interacting with coworkers is important. Being able to go over a design at a whiteboard together rather than reading the same powerpoint slide separately is important. THe best ideas I've had in my career have been created as a result of talking to my coworkers over lunch/coffee break/tangent from another discussion. Telecommuting is a loss to productivity even if they are perfect about actually working (which having done it for a year- its not an easy thing to do, there's a lot of temptations). Its not only easily worth 15-30k, its worth 2-3 times that to have then onsite. That's ignoring the fact that a large number of people won't be on point when working from home- many without even meaning to cheat the system.

    As a developer I'll just say that "face time" and interacting with coworkers are two of the main impediments to me getting shit done.

  7. Re:How long is rent going to go up before?dun dun by Anonymous Coward · · Score: 0

    You gain some extra time out of him each day because he doesn't have to commute

    I can't imagine many people are paid to commute. Most are paid from the time they get into the office, to the time they leave.

  8. Re:How long is rent going to go up before?dun dun by klui · · Score: 1

    Assuming you work with people in your office. Due to globalization, there are a lot of groups that are dispersed and people work with others across cities, states, continents for a majority of their work.

  9. They're not honest by rsilvergun · · Score: 2

    they just lost. That's all. I'm sure they fought mightily to avoid paying.

    --
    Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
    1. Re:They're not honest by mjwx · · Score: 1

      they just lost. That's all. I'm sure they fought mightily to avoid paying.

      To be honest, would you pay tax that you didn't have to.

      Don't get me wrong, I dont at all advocate tax evasion but you've got to be mad not to be trying to minimise your tax.

      The big difference between Uber and AirBNB is that AirBNB tried to fight, yeah it was a forgone conclusion (I fought the tax dept and the tax dept won) but Uber is not even trying to fight the system at all, they're trying to ignore the system. This never works as the system won't ignore you. Its a toss up over whether Uber will go down for something like tax evasion or get sued into oblivion by insurance companies.

      --
      Calling someone a "hater" only means you can not rationally rebut their argument.
  10. Re:How long is rent going to go up before?dun dun by Anonymous Coward · · Score: 0

    That's what airplanes and/or cars are for. I telecommute and get as much face time as I need. I can adjust it as needed. For the other 75-80% of the time, typically, I'm fine at home, not shitting up the world with CO2 and causing fatal traffic accidents.

  11. Re:How long is rent going to go up before?dun dun by mythosaz · · Score: 2

    As a developer I'll just say that "face time" and interacting with coworkers are two of the main impediments to me getting shit done.

    That's because you're a curmudgeon. :)

    Obviously the people we work with can be distractions, but there's value in being in proximity with the team you work with at least some of the time even if that time is spent just building a sense of being a team.

    I have the ability to WFH about 1 day a week now, and previously could do about 2. But I'm not sure even I'd want to do 5 if it were offered. My wife, who does sales, works out of our home (another reason not to be there, amirite!), but even she treks into the corporate office to get face-to-face with her team and visits clients face-to-face after initial video conferences.

  12. Re:How long is rent going to go up before?dun dun by Anonymous Coward · · Score: 0

    So...back to the old paradigm of slipping the problem under your office door and hoping an answer falls out in a decade or so?

    FAIL!

  13. Why? by Anonymous Coward · · Score: 0

    If it's just your house or apartment or whatever, why should you have to pay anything for anything? This has nothing to do with covering certain regulation expenses of the hotel industry (since it isn't one) and everything to do with "we want a piece of every pie because we can't be bothered to reign in our budgets and fuck the taxpayers".

  14. Re:How long is rent going to go up before?dun dun by Anonymous Coward · · Score: 0

    Well, I work with adults. So despite the fact that we have all worked with each other a thousand or three miles apart for 15-20 years, we all do rather fine in terms of teamwork, self-motivation, responsibility, accountability, and productivity.

  15. Re:How long is rent going to go up before?dun dun by gnupun · · Score: 1

    Because face time is important. Interacting with coworkers is important.

    Not really. Face time is very little unless you're a manager type of employee and you can interact with coworkers over phone/video chat. They want employees on site so they can keep an eye on them, i.e. personally supervise them, otherwise the employees are likely to goof off.

  16. Re:How long is rent going to go up before?dun dun by YrWrstNtmr · · Score: 1

    You gain some extra time out of him each day because he doesn't have to commute

    No, they don't. At least my organization doesn't. My workday starts at xx:30, and ends at yy:zz. Whether I am telecommuting or not.

  17. Re:How long is rent going to go up before?dun dun by rmdingler · · Score: 1
    For me, time away from home is mostly work, and the longevity of the working experience is in inverse proportion to my appreciation of the down time.

    I would have to work (away from home) at something, at least part of the time, even if money was no longer a consideration.

    Too many days off in a row and I don't have anything to measure against.

    --
    Happiness in intelligent people is the rarest thing I know.

    Ernest Hemingway

  18. Re:How long is rent going to go up before?dun dun by Whiternoise · · Score: 1

    I think it's more important to have the option of being able to remote work if you choose to. Not even to remote work, but being able to roll in at midday and leave at 8pm. Let your workers work on their schedule, unless their role is something that demands a normal business day e.g. client/partner facing. I personally wouldn't enjoy working from home full time; I don't have the self control to not get sidetracked with other projects I have going. I do, however, like turning up late morning and working until 8 or even 10pm some days. That and I enjoy where I work and interacting with my colleagues. I would seriously consider taking a pay cut to be able to completely define my hours, it's more important to me than working a fixed schedule.

  19. Re:How long is rent going to go up before?dun dun by Anonymous Coward · · Score: 0

    As a developer I would have to say that with modern communications one can be virtually face-to-face with coworkers while telecommuting. I am also more productive because there are fewer distractions. I also have access to better equipment and facilities. And I don't waste hours each day pointlessly commuting from A to B and back again. But, best of all, I earn much more money.

    I have never ever retained any really useful information from a powerpoint slide.

  20. AirBNB is a bit bullshit, in my opinion by Anonymous Coward · · Score: 1

    Posting as anon so I don't lose my mod points.

    I just booked a cottage in Portland, OR for 4 nights. The price on the website was $65 a night - seemed reasonable. Price after AirBNB Fees and PDX Tax? $110 a night. Give me a break. Almost double for the fees? The tax was something like $14 a night, so AirBNB was pocketing a big chuck of money every fucking night. Last time I use them. Back to the Hilton for me; as a member I get a decent breakfast, access to the Executive Floor (free food and wine in the evening) and points to apply to free rooms.

    1. Re:AirBNB is a bit bullshit, in my opinion by ChunderDownunder · · Score: 1

      Just curious, how much a night is a room at the hilton, including your membership?

    2. Re:AirBNB is a bit bullshit, in my opinion by Anonymous Coward · · Score: 0

      Membership is free (I think it's called HHonors). After a certain number of stays (not hard to get if you travel regularly) you get bumped from silver to gold and the Exec floor is available (if they have one, not all do, especially the Hampton Inns, and DoubleTrees); the more you stay, the higher you go up the precious metal tree (IIRC). With taxes and fees and one of their many discounts (mine is gov't) I pay around $100 a night. Many times, I find an actual Hilton is cheaper than a Hampton (they have other properties in the franchise like DoubleTree, but I find the Hampton to be the most consistent, state to state, main Hilton if staying right in the city). Other perks, They have everything on file so I just call or e-mail and pick up my keys at the front desk, late checkout, reserved parking (but that fills up fast), some places don't charge members for ramp parking, etc. Not a bad deal if you do a lot of travelling and have to pay your own dime. Just my opinion. Never tried any other chain deal in the US.

  21. OT: There has to be an alternative to Scribd by Anonymous Coward · · Score: 0

    How has this javascript, ad-laden, broken site survived for so long? is there no lightweight alternative? ghostery shows over 11 trackers on Scribd....

    1. Re:OT: There has to be an alternative to Scribd by Anonymous Coward · · Score: 0

      How has this javascript, ad-laden, broken site survived for so long? is there no lightweight alternative? ghostery shows over 11 trackers on Scribd....

      Not OT at all.

      At least documentcloud it's trivial to transform the link into foo.pdf that can be downloaded and viewed locally without everyone from your machine to the server tracking how many seconds you spent on each page.

      I've seen this problem elsewhere - a simple IMG SRC=foo.jpg or even IMG SRC=instagram.com/foo.jpg would have worked - but no, it's gotta be a Javashit embedded frame.

      Seriously, webdevs. HTML 3.0 worked better than this. Webdevs. Stahp.

  22. 4 cities... by NotQuiteReal · · Score: 3, Informative

    I live in California, but stayed in hotels in several other states in the last couple of weeks... 14% occupancy tax does seem high, but this is San Francisco, they love taxes up there...

    Dallas = Room + 2% DTPID Fee + 7.1% City Tax + 6.1% State Tax
    NYC = Room + Sales Tax 8.875% + Occupancy Tax 5.875% + Room Tax $2.00 + Room Unit Tax $1.55
    Boston = Room + State Tax 5.7% + City Tax 6% + CCF Tax 2.75%
    Philadelphia = Room + Lodging Tax 8.5% + Sales Tax 8%


    In Europe they are much more civilized about it -- they just toss in some huge VAT tax (like 20%) and may or may not mention that it is "included" (how thoughtful of them.) In some places there are still more taxes - in Dublin Ireland, my hotel bill had the room fee, with VAT included, but also added "other local taxes and fees" amounting to 9.25% of that...

    In general, the observation that taxing visitors is popular is accurate, and accelerating, it seems.

    --
    This issue is a bit more complicated than you think.
    1. Re:4 cities... by Anonymous Coward · · Score: 0

      In most of the civilised parts of europe you have to put the price+taxes in full (therefore they never say "incl" as it is implied and required by law - the price they put is what you pay.). I do not know where you have been but ive never noticed what you say and i have been in most of north and central europe. (it is however common to then add hidden costs by giving extra services not mentioned directly - this is something we are still working on solving, and american company attitudes brought to europe does not help one bit)

    2. Re:4 cities... by NotQuiteReal · · Score: 2

      Yes, in Europe, the price stated, is the price you pay, but, at least while shopping via the Internet, it is common to point out that the VAT is included. For example, go to booking.com, select a European city, pick a random hotel and it will give the price - AND - the notation "Included 20% VAT" (London) or "Included 25% VAT" (Copenhagen), "Included: 6% VAT, Not included: € 2 city tax per person per night." (Bruges).

      While it is nice to have an all-inclusive price, it is important to be transparent on the amount of taxes being paid. In Europe, just as in the US, taxes vary wildly state-by-state.

      --
      This issue is a bit more complicated than you think.
    3. Re:4 cities... by david_thornley · · Score: 1

      Looking at Dallas (15.2% total), NYC (14.75% + $3.55), Boston (14.45%) and Philadelphia (16.5%), San Francisco sounds very reasonable at 14%.

      --
      "When you have eliminated the unacceptable, whatever is left, however improbable, must be the truthiness" - Holmes
  23. Re:Next there will be 14% occupancy tax on your ho by Anonymous Coward · · Score: 0

    I agree it should stop. But you need to realize that this is far worse elsewhere.

  24. Re:How long is rent going to go up before?dun dun by Anonymous Coward · · Score: 1

    How long until companies realize they can save 15,000-30,000 on paying their software engineers that telecommute.

    It isn't that easy.

    No, I'm not going to be Douchey McOfficedroneson and whine about "face time" (2005 called, and I believe I made out the words, "video", "conference", "skype", "you stupid excuse-spewing bitches") and other such nonsense.

    Rather, when home becomes your place of work, you no longer have a home.

    Do that for ten years. I have.

    I'd murder someone to attend a boring, incoherent PowerPoint presentation. Hell, at this point, I'd actually stay awake during said presentation.

  25. Re:How long is rent going to go up before?dun dun by Anonymous Coward · · Score: 0

    "bad tempered and surly" - certainly in line with what I have observed from self-declared 'adults'.

  26. The tax is all this was ever about by gelfling · · Score: 1

    Cities don't give a ratfuck if your neighbors are pissed off. All they worry about is the tax. 14%? That's a steal compared to some places. That will of course double soon.

    1. Re:The tax is all this was ever about by david_thornley · · Score: 1

      By and large, cities do care if enough people get pissed off. That's a level of government where a few hundred angry people who organize can easily change the result of a city council election.

      --
      "When you have eliminated the unacceptable, whatever is left, however improbable, must be the truthiness" - Holmes
    2. Re: The tax is all this was ever about by gelfling · · Score: 1

      Taxes fix anything

  27. The government will always by kilodelta · · Score: 1

    Get it's pound of flesh. Here in RI they charge an extra 1% on prepared meals. One of these days I can see Chinese food places and pizza parlors just delivering raw ingredients to the customer.

    Better yet - overnight parking permits are $100 per year. Except where I live it's so fucking dense the house across from me has THREE cars parked on my side of the street. Good thing I don't have a car. And when I do finally give in and buy a car again I'll just make my own permit. Not many security features built in and I doubt the cops checking overnight are gonna call the code in.

  28. Re:How long is rent going to go up before?dun dun by sexconker · · Score: 1

    So...back to the old paradigm of slipping the problem under your office door and hoping an answer falls out in a decade or so?

    FAIL!

    Back to the paradigm of getting your shit in order and knowing what you want before you ask me to build it.
    Back to the paradigm of reading the emails I send out.
    Back to the paradigm of responding to emails, answering questions therein (I even bold them for you!), and providing unambiguous responses. "Yes, that's fine." is not a proper response to an email containing 3 separate questions (none of which are satisfied with a "yes" or a "no").
    Back to the paradigm of understanding your own business and policies so that when I build an application around them you don't have to ask me to change the underlying design a week after launch.
    Back to the paradigm of not having meetings that result only in you saying "we'll get back to you on that" when asked about things in your policy that I have to model in the application.

  29. Why not sleep while traveling? by Anonymous Coward · · Score: 0

    Why not sleep while traveling?

  30. Re:How long is rent going to go up before?dun dun by david_thornley · · Score: 1

    You might want to suggest answers to the questions you ask, so that "Yes, that's fine" is actionable. Things like "What if the beflitter zongs? Shut down the gnord.".

    --
    "When you have eliminated the unacceptable, whatever is left, however improbable, must be the truthiness" - Holmes
  31. Re:How long is rent going to go up before?dun dun by david_thornley · · Score: 1

    In almost any situation, you're going to have to have some defined times to directly interact with people. Nobody cares when I show up or leave as long as I don't abuse that, but there are meetings I normally have to attend.

    --
    "When you have eliminated the unacceptable, whatever is left, however improbable, must be the truthiness" - Holmes
  32. Re:How long is rent going to go up before?dun dun by david_thornley · · Score: 1

    Most software developers are salaried. If commuting takes an hour a day, a standard 40-hour week becomes 45 hours out of the employee's week. That five hours is at least negotiable.

    --
    "When you have eliminated the unacceptable, whatever is left, however improbable, must be the truthiness" - Holmes
  33. Re:How long is rent going to go up before?dun dun by sexconker · · Score: 1

    I do, but that doesn't help when there are 3 different questions questions and their response tells me they clearly didn't read the questions, my suggestions, or my notes explaining why I'm recommending what I'm recommending and what the implications of making that decision are. Inevitably, I'll get a call a month later asking if we can change that shit, and I'll refer to the previous email, only to get a "Oh, well it needs to be the other way." response.