Airbnb-Opposed Occupancy Tax Bill Moves Ahead in California

California would impose a 15% occupancy tax on short-term rentals to fund construction of affordable housing under a bill the Senate passed Wednesday.

S.B. 584 by Sen. Monique Limón (D) would raise about $150 million a year from renters using Airbnb Inc. and other platforms, to be deposited into the Laborforce Housing Fund. Public entities, housing authorities, and nonprofit housing organizations would receive money from the fund to build new affordable housing or refurbish existing buildings.

The bill passed the Senate 27-11, reaching the two-thirds threshold needed for tax increases. It now moves to the Assembly and ...