June 19, 2015
Airbnb/for PhillyVoice
City Hall passed legislation in June that, as of July 1, makes Airbnb lodging legal and subject to the city's 8.5 percent hotel tax.
Philadelphia City Council passed a bill Thursday that will legalize Airbnb and similar home-sharing rentals in the city while also imposing an 8.5 percent tax, the same rate paid by hotels.
The decision was passed by a 15-0 vote, Philadelphia Magazine reports. It’s expected to be signed into law by Mayor Michael Nutter.
Individuals who rent out their homes for more than 90 days will also have to get a rental license, and the rental period will be capped at 180 days annually.
Tecnically, Airbnb and similar short-term rentals are currently not permitted in the city's residential areas, though people still use the web-based service.
According to Philadelphia Magazine, Pope Francis' upcoming visit to Philadelphia, which is expected to bring 1.5 million people into the city, may be the reason behind the bill.
"When Councilman Bill Greenlee proposed the Airbnb tax on behalf of Nutter in May, he said that demand for rentals would "hit the roof" when Pope Francis visits Philadelphia in September. So, this is also seen by some as a money grab by the city," Philly Magazine reporter Holly Otterbein said.
Read the full Philadelphia Magazine article here.
