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.