Airbnb just spilled the beans on something pretty impressive: They’ve been playing tax superheroes for the past seven years, and the numbers are in: they’ve forked over a massive $275 million in Transient Occupancy Taxes (TOTs) to LA by June 2023. Oh, and get this, nearly $19.7 million of that came in just this year!
Let’s rewind to 2016 when Airbnb and LA joined forces on this tax thing. Basically, Airbnb stepped up to the plate to collect the city’s 14 percent lodging tax from hosts on their platform. And you know those early predictions that they’d bring in around $13 million a year? Well, they blew that out of the water in less than half a year. Talk about overachievers!
But here’s the cool part – this isn’t just about numbers. Airbnb has been a real game-changer for regular folks in LA, giving them a chance to earn some extra bucks. And it’s not just pocket change – this money has been a game-changer for the city too. They’ve been using these funds to fuel community programs and those nifty low-income housing projects. Plus, it’s been keeping the city lights on, quite literally.
But hold up, this isn’t just about LA. Airbnb’s on a mission to save the day for communities all over the world. They get that these tourism taxes are like a lifeline for cities, especially those that got hit hard by the pandemic. And here’s the shocker – they’ve boosted the income they’re funneling to hosts through these taxes by a jaw-dropping 130 percent in the US since 2019.
Now, let’s dive into the Airbnb scene in LA. Hosts are doing pretty darn well. In 2021, the average host made over $21,000. And fast forward to 2022 – all the hosts combined made a mind-boggling $375 million! Oh, and heads up, a whopping 81 percent of these hosts were all about renting out the whole shebang, as in their entire homes. And here’s a heartwarming stat: 66 percent of hosts are saying that hosting has been a total game-changer for them to keep up with housing costs.
And about those dollars they’re hauling in? A cool 74 percent of hosts are putting it towards tackling the rising costs of living. For 60 percent, it’s been a lifesaver for everyday essentials like food and stuff that’s hitting our wallets hard. And shoutout to the ladies – 54 percent of hosts are rocking it as awesome women.
To sum it all up: Airbnb and LA? They’re like that dream team everyone’s talking about. They’ve pumped millions into the city, turbocharged community programs, and given hosts a way to tackle the ever-growing cost of living.