Airbnb's Newest Plan for Gaining Legitimacy in New York City: Pay $21 Million in Taxes


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Once Airbnb figures out taxes, it may have a leg to stand on as it argues for a repeal of the laws that make two thirds of its NYC rentals illegal -- taxes or not. Then there are the leases, landlords, and condo boards to deal with.

In the midst of a fight with the New York State Attorney General, Airbnb revealed a new plan for gaining legitimacy in its largest, and arguably most important, market. In a briefing held today, Airbnb's head of global public policy David Hantman outlined a plan in which Airbnb would collect and distribute the taxes owed to the city and state directly from Airbnb hosts. "We've proposed that Airbnb take on the entire burden," explains Hantman. The plan involves a line item in the booking process in which taxes would be automatically deducted from each booking and transferred to the govern