Airbnb to Collect Birmingham Lodging Tax

Aug 29, 2018

Airbnb is set to start collecting local lodging tax in Alabama’s largest city within the next month.

Al.com reports the Birmingham City Council approved an agreement yesterday allowing the short-term rental website to collect the city's 6.5 percent tax on rentals. Airbnb already collects a 4 percent state lodging tax for all Alabama rentals, including Birmingham.

Assistant City Attorney Julie Barnard says the tax will be collected automatically when a room is booked within city limits. Airbnb then will send the collected tax revenue to the city.

The city previously didn't have a system requiring Birmingham Airbnb hosts to collect lodging tax on rentals. Airbnb says Birmingham hosts earned about $1.5 million in 2017 from around 14,400 guests. That means the city lost nearly $100,000 in lodging tax revenue that year.