California Bill Eases Tax Collection From Home Rental Platforms

Local governments in California could require Airbnb Inc., VRBO, and other short-term rental platforms to collect lodging taxes from customers by asking the state to administer the tax on their behalf under a bill the Senate approved Tuesday.

The Senate voted 39-0 to pass the bill and send it to the Assembly, where it must pass by Sept. 10 to reach the governor’s desk. Gov. Gavin Newsom (D) hasn’t taken a position on the bill.

Under current law, rental hosts are responsible for collecting local transient occupancy taxes from their guests but many aren’t aware of that responsibility. Although some ...