Kathleen O’Malley first used Airbnb in the summer of 2013, when she traveled through Washington State and British Columbia with her fiancé. After that, “we were hooked,” says O’Malley of Portland, Ore. The couple used Airbnb to book a cottage in Sonoma for their honeymoon in September.
Airbnb connects budget-minded travelers with homeowners who have a room, apartment or house to rent. Soon, guests could pay more to sleep on someone’s fold-out couch. In July, Airbnb began collecting 11.5% in city and county lodging taxes for bookings in Portland. Airbnb plans to expand the program to San Francisco, which charges a 14% hotel tax. From there, “we’ll take the lessons we’ve learned and move forward,” says Airbnb spokesman Nick Papas.
The move is an attempt to forestall regulation that threatens to slow the company’s growth. Other enterprises in the “sharing economy” are similarly pursuing agreements with state and local governments amid concerns about unfair advantages over more-traditional businesses. For instance, Colorado recently enacted legislation that authorizes ride-sharing services, such as Lyft and Uber, to operate in the state, provided drivers undergo background checks and obtain insurance.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
O’Malley, founder of FrugalPortland.com, says occupancy taxes won’t deter her from using Airbnb. It’s still cheaper than a hotel, she says.
-
Here's How To Get Organized And Work For YourselfWhether you’re looking for a side gig or planning to start your own business, it has never been easier to strike out on your own. Here is our guide to navigating working for yourself.
-
How to Manage Risk With Diversification"Don't put all your eggs in one basket" means different things to different investors. Here's how to manage your risk with portfolio diversification.
-
Five Ways to a Cheap Last-Minute VacationTravel It is possible to pull off a cheap last-minute vacation. Here are some tips to make it happen.
-
Best Places to Visit Where the Dollar Is StrongFrom the Americas and Europe to Africa and Asia, we list the 10 best places to travel to where the U.S. dollar is the strongest.
-
24 Best Travel Websites and Apps to Find Deals and Save You MoneyTravel Use Kiplinger's guide to the best travel websites and find discounts and deals so you can vacation without breaking the bank.
-
Five Ways to Save on Vacation Rental PropertiesTravel Use these strategies to pay less for an apartment, condo or house when you travel.
-
How to Avoid Annoying Hotel Fees: Per Person, Parking and MoreTravel Here's how to avoid extra charges and make sure you don't get stuck paying for amenities that you don't use.
-
Frequent Flyer Tax Could Raise Billions for ClimateCould taxing frequent flyers help combat global pollution? Some climate scientists say yes.
-
How to Make The Most of a Travel Insurance ClaimMore travelers are buying insurance. If your trip is canceled, take these steps to increase your chances of recovery.
-
Despite Cancelled Flights and Short-Staffed Hotels, Americans Are (Sort of) Traveling AgainBusiness Travel Thanks to high gas prices, cancelled flights and labor shortages across the sector, the post-COVID travel recovery looks uneven.
