City to begin receiving taxes for Airbnb rentals

City to begin receiving taxes for Airbnb rentals
View from a Cameron Street courtyard in Old Town (Photo Credit: M. Enriquez for Visit Alexandria)

By Alexa Epitropoulos |

The city will begin receiving taxes for rentals within city limits listed on online lodging platform Airbnb this April.

City Manager Mark Jinks announced at a March legislative meeting that an agreement had been reached with Airbnb and the platform announced that it would begin collecting and remitting hotel occupancy taxes on behalf of the city in April on Monday.

The agreement will mean the city receives a 6.5 percent combined sales tax and a 2 percent occupancy tax, as well as a charge of $1 per room per night in all eligible bookings on the city, from Airbnb guests, according to an Airbnb news release. There are 510 properties listed on Airbnb in the City of Alexandria, with hosts earning an average of $3,700 annually from sharing their homes 31 nights a year, according to the release. The agreement will go into effect April 1.

Alexandria is the first city in Virginia to make such an agreement, according to Airbnb, though it isn’t the first in the greater D.C. region. Airbnb has existing agreements with Montgomery County in Maryland and D.C. 

“With 510 Airbnb hosts across the City of Alexandria, we look forward to the important economic benefits the new agreement will bring to local resources, communities and families,” Will Burns, Virginia public policy director for Airbnb, said in a news release. “Being able to collect and remit taxes on behalf of our hosts and guests will help Airbnb’s community pay their fair share, is a win-win for Alexandria’s growing popularity and will create an additional stream of revenue from the state’s tourism industry.”