Airbnb taxes boost income for Santa Fe

AP News
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Posted: Oct 26, 2016 2:06 PM

SANTA FE, N.M. (AP) — The vacation rental company Airbnb will now tax visitors who rent Santa Fe accommodations, adding money to the city's coffers.

The Santa Fe New Mexican reports (http://bit.ly/2dJ3CpI ) that a new agreement between Airbnb and Santa Fe calls for the company to collect what's known as a bed tax or lodgers tax. The 7 percent tax is charged on the total cost of all rentals for 30 days or less.

Airbnb began charging for rentals Aug. 1. Santa Fe collected 60 percent more revenue from short-term rentals this August than it did in August 2015.

In response to complaints from the hospitality industry and others, Santa Fe recently beefed up penalties for rental owners who don't register with the land-use department, which involves tax certification as well as fire and safety inspections.

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Information from: The Santa Fe New Mexican, http://www.sfnewmexican.com