Airbnb and San Francisco Agree to Settle $120 Million Tax Claim

Vacation rental company Airbnb Inc. won’t get the $120 million it said it was overtaxed by the city of San Francisco, according to a settlement agreement announced Thursday.

The lawsuit, brought by Airbnb in February 2024, sought repayment on taxes the city assessed on the company’s gross income from 2019 to 2022. The company challenged its tax status in the city as a travel arrangement organization, arguing it belonged in a lower-taxed category.

Airbnb said it had provided documentation that it had fewer workers in the city than it had previously estimated and paid taxes for. It argued it had ...