Recently, some San Francisco hosts received a letter from the city’s Treasurer & Tax Collector about the need to obtain a business registration certificate. This article explains how property owners using Pillow can stay compliant.
Why is this happening?
As the sharing economy becomes mainstream - it is natural that it becomes regulated like any other type of business. This process legitimises the sharing economy and will further its sustainability. It also ensures that potential negative consequences of sharing ones home are reduced for both owners, guests, and the city as a whole.
Do I need to do anything?
If your home is currently registered as a business and you are paying taxes on your home sharing - you do not need to do anything. However, if you are not registered as a business, you will need to take action in order to avoid penalties. All property owners sharing their home with guests are required to obtain a business registration certificate from the Treasurer and Tax Collector's office. In the most recent letter, the Tax Collector states that those who do not file for a business registration certificate may be subject to penalties.
Where I can get more information on this?
See Airbnb's San Francisco Responsible Hosting page for more information. Keep in mind that while Airbnb can remit taxes on behalf of the property owner, HomeAway and VRBO does not, and property owners will have to submit taxes if they are using those platforms with Pillow. For more information about taxes, see our Taxes article.
If you have more questions, please submit a request. We strive to answer all questions within 24 hours.