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Airbnb has agreed a deal with Los Angeles city officials to collect taxes on behalf of its hosts.
In a deal similar to destinations including Paris, Amsterdam, India and many US states, the sharing economy provider will collect city taxes from guests at the time of booking.
The tax collection rate of 14 per cent will start in August, with LA aiming to recoup $5 million annually from short term rentals, according to the Los Angeles Times.
Airbnb said the deal will "simplify the payment of tourist tax by collecting and remitting these taxes on behalf of hosts."
Before this deal paying the tourist tax has been the responsibility of the people letting flats or rooms via Airbnb and similar sites, who were often not aware of the rules.
Airbnb praised the move, saying it would help locals and ensure the city shared in the economic benefits of such rentals. “Our community of hosts wants to pay their fair share and we want to help,” said John Choi, Airbnb public policy manager for Southern California.
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