New Taxes on Airbnb Stays in Virginia City

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. 

Airbnb and the city of Alexandria have reached a first-in-the-state agreement on tax collections, The Washington Post reports. 

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.

Copyright AP - Associated Press
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