New taxes on Airbnb stays in Virginia city

ALEXANDRIA, Va. – 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 per cent 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.