Editor's note: This story has been updated with the following correction: Airbnb hosts pay transient occupancy taxes, which Airbnb then remits to the city.

 

Airbnb has released a study saying a proposed limit on Airbnb listings in San Francisco would cost the city $58 million in tax revenue over the next 10 years. 

The loss would stem from a dip in transient occupancy taxes Airbnb remits on behalf of hosts to the city, according to Airbnb spokesman Christopher Nulty. Nulty said the estimates were based on Airbnb's current business in they city. 

A ballot initiative slated to appear in the November elections proposes limiting the number of nights a vacation rental can be rented out to 75 nights a year.

San Francisco’s Office of Economic Analysis released a study in May stating that the city would see an economic hit of $250,000 to $350,000 per year per home converted to a short-term rental unit, according to Re/code.

Airbnb in its study projects a loss of $405 million over the next 10 years from the pockets of San Francisco Airbnb hosts who would lose rental income as a result of the proposed limit, according to Nulty. Re/code reported on the study Tuesday. 

The contention between Airbnb and San Francisco, where it is headquartered, follows a trend for the company, which allows users to rent out their homes or parts of their homes to short-term guests.

The office of the New York State attorney general reported in October that roughly three quarters of all Airbnb rentals in New York City were illegal. Affordable housing advocates in the city have criticized the company for absorbing a growing proportion of an already short supply of housing.

The regional government of Catalonia, Spain, slapped a fine of €30,000 on the company earlier this month for failing to register rentals with the regional tourism registry.

But as Airbnb, like fellow sharing economy behemoth Uber, clashes with regulators, some policy makers embrace the rental startup. Officials in Paris have hailed Airbnb for invigorating the local hotel industry.

Published on: Jul 22, 2015