Airbnb Hosts Face Tax Uncertainty

Hosts on apartment-sharing platform Airbnb face uncertainty as tax and regulatory issues are raised in local courts. In the spring of 2012, San Francisco confirmed that short-term rentals are subject to the city’s 15% transient occupancy taxes, and New York City recently issued a $2,400 fine to an Airbnb host renting out his apartment to strangers. Yet Airbnb hosts remain largely unsure of what taxes they are responsible for, or even how to pay them. While city officials claim they are losing potential tax revenue on Airbnb’s short-term rentals, economists argue that the benefits of Airbnb visitors to the local economy far outweigh any loss. David Hantman, Airbnb’s head of global policy, said in a statement. “Last year, an independent economist found that activity facilitated through Airbnb contributed $56 million to the San Francisco economy.” Regulators need to first clarify existing laws, so hosts are aware of their financial responsibilities. Next, cities should weigh the economic benefit of apartment-sharing to local communities, and determine if the taxes are necessary at all. Get the full story on TIME.