ALEXANDRIA, Va. (AP) — Residents in one Virginia city who rent out their homes through the short-term rental service Airbnb will have to start charging hotel occupancy taxes.
The Washington Post reports that Airbnb and the city of Alexandria, a northern Virginia suburb of the nation’s capital, have reached a first-in-the-state agreement on tax collections.
The agreement requires Airbnb to collect a 8.5 percent hotel occupancy tax and $1 per night charge for all bookings.
City officials estimate the new tax, which goes into effect April 1, will bring in about $100,000 a year.
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