Avalara MyLodgeTax > Blog > State and Local News > Airbnb starts collecting short-term rental taxes in Pasadena, California, on May 1

Airbnb starts collecting short-term rental taxes in Pasadena, California, on May 1

  • May 1, 2018 | Jennifer Sokolowsky

Starting May 1, Airbnb will collect lodging taxes on behalf of its short-term rental hosts in Pasadena, California.

Pasadena hosts have been required to collect transient occupancy tax (TOT) of 12.11 percent from guests on short-term rentals since March of this year, according to new city rules passed last fall.

Effective May 1, Airbnb will collect the 12.11 percent Pasadena TOT for its hosts. However, short-term rental operators who use other services, such as VRBO or HomeAway, are responsible for registering, filing, and remitting all lodging taxes to the city. The MyLodgeTax service can help short-term rental operators easily and accurately take care of their lodging tax obligations.

The new rules also require Pasadena hosts to live in the rental property at least nine months out of the year, and they must get a short-term rental permit from the city. The regulations restrict short-term rentals to 90 days per year when the host is not present in the home; there is no limit on hosted rental days. Pasadena has established a hotline for reporting illegal short-term rental properties or parking, trash, and other nuisance complaints relating to short-term vacation rentals.

The new transient occupancy tax — boosted by Airbnb’s agreement with the city to collect the tax, is expected to generate at least $600,000 per year for Pasadena’s cash-strapped city coffers.

Pasadena Airbnb hosts made $7.8 million from short-term rentals in the year before the new law was passed, according to Airbnb.

Lodging tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Jennifer Sokolowsky
Avalara Author Jennifer Sokolowsky
Jennifer Sokolowsky writes about tax, legal, and tech topics. She has an extensive international background in journalism and marketing, including work with The Seattle Times, The Prague Post, Avvo, and Marriott.