Taxes

Calif. Senate passes 15% tax on short-term rentals

Industry groups strongly oppose the legislation, saying it will hurt rental owners and lower-income travelers.

Austin Jenkins

07:33 PM, May 31, 2023

FILE – The login page for Airbnb’s iPhone app is seen in front of a computer displaying Airbnb’s website on May 8, 2021, in Washington. Airbnb is going back to its roots to cater to travelers who are growing more concerned with saving money. The company said Wednesday, May 3, 2023, that it’s rolling out a new Airbnb Rooms offering in which guests share space with the owner. Airbnb says room prices will average $67 a night. (AP Photo/Patrick Semansky, File)

Staying in an Airbnb, VRBO or other short-term lodging option would require renters to pay an extra tax under a bill advancing in the California legislature.

The Senate voted Wednesday to approve a 15% tax on short-term vacation rentals, with the goal of creating a state fund to build affordable housing for workers who are priced out of the local rental market.

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