Birmingham City Council Passes Airbnb Tax Agreement

BIRMINGHAM, AL - The Birmingham City Council approved a tax agreement today between the city and Airbnb that authorizes the company to collect the local lodging tax on behalf of its Birmingham hosts and remit the revenue directly to the city. The agreement passed by a vote of 5-0.

Effective October 1, Airbnb will automatically collect and remit the 6.5 percent Birmingham Lodging Tax for taxable bookings, making the process more efficient for local Airbnb hosts and the city.

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Rules for collecting and remitting hotel taxes were designed for traditional hospitality providers and large hotel corporations, so Airbnb has partnered with over 370 local governments throughout the U.S. to collect and remit taxes, making the process easy for hosts to pay their fair share while contributing new revenue for local governments.

Of Airbnb’s 370 U.S. tax partnerships, this now marks the company’s sixth in Alabama. In 2016, Airbnb announced an agreement with the state of Alabama to collect state lodging taxes on all bookings throughout the state. Airbnb also has agreements with Auburn, Orange Beach, Tuscaloosa and most recently Opelika to collect and remit their respective city lodging taxes.

“Our hosts want to pay their fair share, and we want to help,” said Tom Martinelli, Southeast policy director for Airbnb. “Our Birmingham host community provides a tremendous service to the city by allowing more visitors to stay in Birmingham and spend money with local businesses. This tax agreement will only enhance the economic impact and increase revenue for the city.”

Photo by Carl Court/Getty Images

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