San Francisco has reached a zero-dollar settlement with Airbnb over a tax refund lawsuit that drew protests, a labor-led boycott campaign, and calls from prominent Democrats for the company to stand down.
The Board of Supervisors’ government audit and oversight committee will vote on the settlement Tuesday. The resolution (opens in new tab) authorizes the city to resolve the case with no money changing hands.
Airbnb’s lawsuit, filed in 2024, sought a refund of $120 million in business taxes it says were overpaid. Critics claimed the battle has tied up two-thirds of that amount in the city’s litigation fund, preventing it from being used for public services amid budget shortfalls. Airbnb contended that the city’s gross receipts tax and Proposition C, the homelessness services tax (opens in new tab), were misapplied to the company from 2019 to 2022.
City Attorney David Chiu described the outcome as a victory for San Francisco taxpayers.
”We are pleased to have reached an agreement that, above all, protects the public’s money,” Chiu said in a statement. “Our office works tirelessly to defend San Francisco’s tax laws and ensure all taxpayers pay their fair share. This settlement achieves both goals while putting this dispute behind us.”
An Airbnb spokesperson said the company was “pleased to reach an agreement,” adding, “We’re committed to ensuring San Francisco remains a great place to live and work.”
The SF Labor Council, which had called for a boycott of Airbnb due to the lawsuit, expressed relief. “This settlement means that our boycott was justified and we are very glad to see Airbnb finally paying their fair share,” Executive Director Kim Tavaglione said. “Airbnb’s greedy tax avoidance has been costing the city, but now this money is freed up to support essential services for San Franciscans.”
The majority of the $120 million paid by Airbnb is expected to flow to the general fund. The mayor, controller, and budget and legislative analyst are expected to release an updated five-year revenue and spending forecast March 31.