Coming Soon: Hotel Tax on Airbnb Rentals in San Francisco Next month, the city will start charging renters a 14 percent occupancy tax on behalf of its hosts.

By Laura Entis

Opinions expressed by Entrepreneur contributors are their own.

If you're planning to stay at an Airbnb in San Francisco, rates are effectively going up 14 percent as of October 1st. That's because the peer-to-peer rentals startup, which has been at the center of an ongoing legislative battle, has agreed to start collecting occupancy taxes from guests on behalf of its hosts.

"Our community members in San Francisco have told us they want to pay their fair share and the overwhelming majority have asked us to help," David Owen, Airbnb's regional head of public policy, wrote in a blog post Wednesday. "This has been a complicated issue and we're happy to be taking action to help simplify the collection process for hosts, guests and for the City."

Related: Innovation vs. Regulation Fight Continues as Airbnb Reveals Host Names to NY?s AG

City officials have long claimed that Airbnb, through a regulatory loophole, has dodged the hotel tax applied to short-term rentals, costing San Francisco millions of dollars in lost tax revenue.

While the rentals startup initially agreed to start taxing guests by June 1st, it's since dragged its heels. This latest announcement comes after an eight-hour session, attended by Owens, in which the San Francisco's Board of Supervisors' Land Use Committee discussed revisions to a proposed law that will regulate short-term rentals, which are currently illegal.

Earlier this year, Airbnb agreed to apply an 11.5 percent occupancy tax on all listings in Portland, and has discussed adding a similar tax in New York City.

Related: Sharing Economy Sets Sights on Business Travelers -- But Will They Bite?

Laura Entis is a reporter for Fortune.com's Venture section.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business News

'I Hate Bureaucracy': Leaked Internal Amazon Document Reveals How the Tech Giant Is Cutting Down on Middle Management

Amazon could soon let go of thousands of managers, resulting in savings of up to $3.6 billion.

Growing a Business

Entrepreneurs Should Invest in Service, Not Just Sales — Here's How to Build a Customer-First Business

A customer-first business strategy that prioritizes exceptional service, empowers employees and leverages feedback can transform satisfied customers into loyal advocates, driving sustainable, long-term growth.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Leadership

The 2025 Leadership Playbook — Strategies to Help You Thrive in Uncertain Times

How to lead through uncertainty, adapt to challenges and position your organization for lasting success.

Business News

'Gen Z Is Obsessed': Chili's Sales Have Skyrocketed Thanks to the Triple Dipper and Turbo Chefs

On an earnings call this week, one analyst said the company's turnaround was "the best one of all time" in the restaurant industry.