Starting June 1, Richmond Airbnb guests will pay 10% transient occupancy tax

Planned rally at Richmond City Hall Thursday to call for 'Clean Dream Act'

Starting June 1, guests of Airbnb rentals in Richmond will see a 10-percent transient occupancy tax (i.e. hotel taxes) added on their bill to be paid to the city.

The tax is the result of an agreement announced Wednesday between Airbnb and the city of Richmond. It follows efforts launched last year by Mayor Tom Butt, who questioned whether the city was receiving its fair share of taxes from the company’s online bookings. 

About 100 properties host Airbnb rentals in Richmond, according to Marisa Moret, Airbnb public policy manager for Richmond.

“Agreements like this allow communities to rightfully benefit from the economic impact of home sharing while also making it easier for Airbnb hosts, ­the vast majority of whom are middle class people sharing their own home, to comply with local tax laws,” Moret said.

City Manager Bill Lindsay praised Airbnb for setting an example as a corporate partner.

“The sharing economy plays an important role in our city’s overall fiscal health,” Lindsay said in the statement. “We applaud Airbnb for agreeing to collect transient occupancy taxes, as all lodging facilities in Richmond are required to do.”

Richmond is now among more than 275 jurisdictions globally where Airbnb collects and remits hotel taxes, according to the company.