HomeMy WebLinkAboutAgreement - Airbnb VCA TOT & TBID - Executed 6.26.26 VOLUNTARY COLLECTION AGREEMENT
FOR
THE CITY OF GILROY, CALIFORNIA TRANSIENT OCCUPANCY TAX AND
TOURISM BUSINESS IMPROVEMENT DISTRICT ASSESSMENT
THIS VOLUNTARY COLLECTION AGREEMENT (the “ Agreement ”) is dated
August 1, 2026 and is between AIRBNB, INC. , a Delaware corporation (“ Airbnb ”), and the
FINANCE DEPARTMENT OF THE CITY OF GILROY, CALIFORNIA (the “ Taxing
Jurisdiction ”). Each party may be referred to individually as a “ Party ” and collectively as the
“ Parties .”
RECITALS:
WHEREAS, Airbnb represents that it provides an Internet-based platform (the
“ Platform ” ) through which third parties offering accommodations and/or activities (“ Hosts ”)
and third parties booking such accommodations and/or activities (“ Guests ”) may communicate,
negotiate and consummate a direct booking transaction for accommodations and/or activities to
which Airbnb is not a party (“ Booking Transactions ”); and
WHEREAS, the Taxing Jurisdiction and Airbnb enter into this Agreement voluntarily in
order to facilitate the reporting, collection and remittance of applicable transient occupancy taxes
and applicable sales taxes required by law and imposed by THE CITY OF GILROY pursuant
to Chapter 25A Section 25A.2 (the applicable “ Code ”), as in effect on the Effective Date
(“ Taxes ”), on behalf of certain Hosts for Booking Transactions completed by such Hosts and
Guests on the Platform for accommodations transactions located in THE CITY OF GILROY
(the “ Taxable Booking Transactions ” ) .
NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS, PROMISES
AND AGREEMENTS CONTAINED HEREIN, THE PARTIES AGREE AS FOLLOWS:
(A) Solely pursuant to the terms and conditions of this Agreement, including only for
periods in which this Agreement is effective (defined below), and solely for Taxable Booking
Transactions completed on the Platform by Hosts, Airbnb agrees contractually to assume the
duties of a Taxes collector as described in the Code solely for the collection and remittance of
Taxes on Taxable Booking Transactions on behalf of such Hosts (hereinafter referred to as a
“ Collector ”).
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(B) Starting on August 1, 2026 (the “ Effective Date ”), Airbnb agrees to commence
collecting and remitting Taxes on behalf of certain Hosts, pursuant to the terms of this
Agreement on Taxable Booking Transactions. Notwithstanding Paragraph (I-1) herein, Airbnb
agrees to collect Taxes at the applicable rate of 9% subject to changes pursuant to Paragraph
(I-1). The parties also agree to the collection and remittance of the applicable Tourism Business
Improvement District (“ TBID ”) assessment on behalf of Hosts within the Taxing Jurisdiction, in
the same manner as TOT. The Taxing Jurisdiction hereby authorizes Airbnb to collect this TBID
from guests, on behalf of hosts, for bookings starting on the Effective Date. Except as set forth in
Paragraph (L-1) below, Airbnb shall not assume any obligation or liability to collect Taxes for
any period or for any transaction prior to the Effective Date or after termination of this
Agreement.
(C) Airbnb agrees to register as a Collector on behalf of Hosts for the sole purpose of
reporting, collection and remittance of Taxes under this Agreement, and will be the registered
Collector on behalf of any affiliate or subsidiary collecting Taxes. The assumption of such duties
described in Paragraph (A) above and this Paragraph (C) shall not trigger any other registration
requirements to which Airbnb is not otherwise subject.
REMITTANCE OF TAXES
(D) Airbnb agrees reasonably to report aggregate information on the tax return form
prescribed by the Taxing Jurisdiction, including an aggregate of gross receipts, exemptions and
adjustments, and taxable receipts of all Taxes that are subject to the provisions of this
Agreement. Airbnb shall remit all Taxes collected from Guests in accordance with this
Agreement and Airbnb’s Terms of Service ( www.airbnb.com) (the “ TOS ”) in the time and
manner described in the Code or as otherwise agreed to in writing.
AIRBNB LIABILITY
(E) Pursuant to the terms of this Agreement, Airbnb agrees contractually to assume
liability for any failure to report, collect and/or remit the correct amount of Taxes, including, but
not limited to, penalties and interest, lawfully and properly imposed in compliance with the
Code. Nothing contained herein nor any action taken pursuant to this Agreement shall impair,
restrict or prevent Airbnb from asserting that any Taxes and/or penalties, interest, fines or other
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