Airbnb Users Will Pay Extra Fee When They Book Rooms in Sacramento

This is an archived article and the information in the article may be outdated. Please look at the time stamp on the story to see when it was last updated.

SACRAMENTO -- From block to block throughout the city of Sacramento, homes are being used as short-term rentals or as alternatives to hotels.

In Sacramento, there are more than 450 Airbnb listings so far, and that number keeps growing.

"It's been excellent. Absolutely excellent. Our guests have been really stellar," said Ann Sibbet.

Sibbet and her husband run a therapy business out of their home near Southside Park, but they have also opened their doors to dozens of Airbnb guests.

They've made money -- and the city has, too -- thanks to an ordinance that tacks an occupancy tax to the rental fee.

"We pay 10 to 12 percent now, which I think is a pretty fair amount," Sibbet said.

While Airbnb isn't the only service that homeowners use to connect with short-term renters, it's by far the most popular in Sacramento. Officials here want to make sure the city, is getting its proper cut.

And here's the city's problem -- only about 35 Airbnb operators are paying the tax.

But that's about to change. The city's law and legislative committee approved a plan to help the city enforce the ordinance and force everyone to pay up.

The new proposal calls for a 12 percent fee across the board. Airbnb users will pay for it up front when they book a house or room. Airbnb will then pay the city directly.

The company issued this statement:

"To date Airbnb has established agreements to collect and remit hotel taxes in more than 275 jurisdictions globally and we are excited to engage with the city of Sacramento in this endeavor."