$25 million. That's the widely quoted figure that Airbnb owed the city in back hotel taxes and penalties, and it's perhaps the sum they've just paid San Francisco. Though the Chronicle reports that the company declined to state the exact amount it's forked over, a source tells the paper that Airbnb has given back “tens of millions” to the city.
“Though we have concerns about this assessment, we have paid it in full," is the reticent Airbnb statement quoted by the Chronicle. "This is a welcome step from a hometown company that will mean millions in new revenue for affordable housing and other vital city services,’’ mayoral adviser Tony Winnicker told the publication.
Jose Cisneros, City Treasurer, reportedly audited Airbnb records to confirm a final assessment, and the figure his office came up with isn't known. Back in 2012, it was Cisneros who ruled that back taxes were owed in the first place. Apparently he told Airbnb of the recent assessment two weeks ago.
Airbnb's back tax non-payment had been a sticking point with politicians like Senator Dianne Feinstein and Supervisor David Campos, a particularly vocal critic of the company. Recently appointed District 3 Supervisor Julie Christensen had joined that camp, reportedly warning Airbnb representatives in a private meeting that they needed to pay up.
In a statement from Campos just sent to the media, he says, "After months of public pressure from my office, Senator Dianne Feinstein, the Democratic County Central Committee of San Francisco and many others, Airbnb announced today that they have just paid all back taxes owed to the City, amounting to tens of millions of dollars. This has been a long time coming. It has taken nearly three years for this company to pay the taxes they owed the City. Thank you to everyone who organized and spoke up to hold them accountable."
Airbnb's business model was legitimized by legislation passed by the Board of Supervisors last October. At the time, an amendment from Campos to hold the company accountable for the $25 million failed to pass, and it looked like the company had been delivered from the whole back tax ordeal. That wasn't so, especially in terms of PR. But now the nagging question is likely behind the company, who might be worth $13 billion according to coverage in the Wall Street Journal.
Previously: Airbnb CEO Apologizes For Gandhi Comparison Tweet
