Seven years after entering into a voluntary tax collection agreement, Airbnb today announced  it has collected and remitted more than $275 million in Transient Occupancy Taxes (TOTs) to the City of Los Angeles between August 2016 and June 2023. This includes an estimated $19.7 million in tax revenue this year alone. 

The agreement, which went into effect August 1, 2016,  allows Airbnb to collect and remit the city’s  14% lodging tax on behalf of its Host community. Officials initially estimated the voluntary collection agreement would generate $13 million in annual revenue for the City of Los Angeles, however, those projections were surpassed in the first five months of the agreement.

“Home sharing has allowed Angelenos to help make ends meet while contributing hundreds of millions of dollars in tax revenue that helps fund critical city services.”

Justin Wesson, Airbnb’s Senior Public Policy Manager in California

The annual revenue has helped give City Officials the resources and flexibility needed to fund key community programs and low-income housing initiatives throughout the years  and continues to be a vital source of funding to help the City cover the cost of general services like public safety, street repair, and trash removal.The voluntary tax collection agreement is part of Airbnb’s efforts to support communities around the world. These tourism taxes are a vital source of funding for local governments and the communities they support, especially in areas that saw revenue streams decimated by the pandemic.In contrast, tourism taxes collected on behalf of Airbnb Hosts increased by almost 130% since 2019 in the US.