Airbnb VRBO Owners May See a 15% Tax in California
California lawmakers are considering whether to tax short-term rentals to help fund affordable housing initiatives. The proposed California tax would be 15% on the rental price for short-term rentals (i.e., properties rented for less than 30 days). If passed, the tax would take effect in 2025. Lawmakers and proponents believe that this additional tax would help the housing crisis here in California. While opponents to the legislation argue that this additional tax would kill tourism. Short Term Vacation Rental owners will take the brunt of this tax. Owners will likely pass the tax on as another “surcharge” on top of their rental fee. There are no real winners here. The State hasn’t clarified how this tax will ease the housing crisis.
Call us if you need our help, we’re here to serve you!
~Anthony W. Imbimbo, CPA
619-497-1040