Airbnb started collecting sales and lodgers tax from its local hosts in the city this month.
“This partnership helps us grow our city’s revenue while promoting travel and tourism to the region,” Finance Director Julie Brown said.
Airbnb is an international online company that allows travelers to rent homes or rooms for short-term stays from individual homeowners.
Airbnb’s agreement with the city allows the company to remit taxes directly to the city, a news release said.
The city’s sales tax rate is 3 percent and lodgers tax rate is 2 percent. Lodgers tax collections fund the Durango Area Tourism Office, which markets Durango as a destination.
The city expects new revenue from the deal because not all of the 220 Airbnb hosts in town are licensed and paying taxes, Brown said.
There are 76 vacation rentals permitted within the city.
Airbnb collects taxes for the state of Colorado and the lodging taxes owed to Colorado counties, according to its website.
The city does not have any similar agreements with other vacation rental websites and it is not working on any other deals, Brown said.