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.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free 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.
-
Rally Fades on Mixed AI Revolution News: Stock Market TodayAll three main U.S. equity indexes opened higher but closed lower as a seven-session winning streak for the S&P 500 came to an end.
-
Stretch Your Holiday Shopping Budget Further with These Under-$50 Gifts That Don't Feel CheapAmazon October Prime Day is the perfect chance to nab some under-$50 gifts that feel more expensive than they are (because normally they would be).
-
Noctourism: The New Travel Trend For Your Next Trip"Noctourism" is a new trend of building travel and vacations around events and plans that take place at night. Take a look at some inspiring noctourism ideas.
-
My Husband and I Retired at 67 With $3.2 Million, But He's Frugal About Travel. How Can I Convince Him to Loosen Up?We asked financial planning experts for advice.
-
Cruise Lines Sue to Block Hawaii’s New Climate Tourism TaxState Tax Your vacation to the Aloha State could come at a higher price tag next year. Here’s why.
-
How to Find the Best Alternatives to Popular Travel DestinationsYou don’t have to bust your budget or battle big crowds to enjoy pristine natural beauty, rich culture, authentic cuisine and more.
-
Seven Golf Course Destinations to Vacation Away from the CrowdsBeat the growing crowds of new golfers at these golf course destinations off the beaten path.
-
The United and JetBlue Partnership: Everything We Know About Blue Sky So FarDOT approves Blue Sky, the United and JetBlue partnership that will give frequent fliers more ways to earn and use miles. Here's what you need to know.
-
Struggling with How to Plan a Trip? These Companies Will HelpTravel Plans Sit back, relax and let the professionals handle the logistics.
-
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.
