AirBnB Pays Upwards of $25 Million in SF Back Taxes

Amid growing pressure from San Francisco local government leaders over the last several months, the home sharing service and city leaders have finally reached a reconciliation on the company's back taxes. In a prepared statement, AirBnB representatives have reported that despite having concerns about the Treasurer’s Office assessment of the company’s back tax liability, they have “paid it in full.” 

While the Treasurer’s Office has reportedly refused to publish a number on the basis of confidentiality, San Francisco Chronicle columnists Phillip Matier and Andrew Ross estimate the figure to be around $25 million.

San Francisco City Treasurer, Jose Cisneros, originally ruled in 2012 that AirBnB must comply with the city’s 14 percent occupancy tax from individuals using the company’s peer-to-peer, short term rental system. However, the company did not comply until nearly two years later – beginning October 1, 2014.

Although AirBnB has been in full compliance with the city hotel tax for going on 6 months, sources have pointed out that the company’s statewide back tax liability could inflate as high as $200 million if other California cities follow San Francisco's lead.

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