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Volume XIII, Number 32

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Airbnb Voluntarily Agrees to Collect and Remit Hotel Taxes in D.C. and Chicago

Airbnb Inc. ("Airbnb") announced January 28 that it has voluntarily agreed to collect and remit hotel taxes in the District of Columbia and Chicago. Beginning February 15, Airbnb will collect and remit the District's 14.5 percent hotel tax and Chicago's 16.4 percent hotel tax. In a recent statement to Tax Analysts, Airbnb has expressed its willingness to helping its hosts and guests pay tourism taxes.

While Chicago and D.C.'s hotel/accommodations tax may be broad enough to encompass Airbnb's business model into the existing definition of "operator," Airbnb needs to remain vigilant in its review of each state and local municipality's hotel occupancy tax laws and in its voluntary compliance. If we have learned anything from the online travel company litigation over the last few years, it is that merely because a taxpayer falls within a state or municipality's definition of "hotel operator" or "hotel accommodations provider," that does not necessarily mean that the taxpayer will qualify under each and every statute and ordinance with a similar provision.

© Horwood Marcus & Berk Chartered 2023. All Rights Reserved.National Law Review, Volume V, Number 33
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About this Author

Breen Scheller, Tax Attorney, Horwood, Marcus and Berk Law Firm
Partner

BREEN M. SCHILLER is a partner with Horwood Marcus and Berk Chartered where she concentrates her practice in state and local tax planning and the resolution of state and local tax controversies for multi-state and multi-national corporations.  She advises Fortune 500 companies as well as mid-size and closely-held businesses and start-up companies on issues related to all types of state and local tax, including income tax, sales/use tax, franchise tax, public utility and motor fuel taxes, transaction taxes, gross receipts-based taxes and unclaimed property.  Breen has...

312-606-3220
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