San Jose is poised to become the third city in America to legalize and tax Airbnb rentals, according to reports.
The San Jose Mercury News reports that the city council is expected to approve a 10 percent tax on Airbnb stays, which will be limited to 180 nights per year, per rental.
There are only about 300 Airbnb rentals available in San Jose, a fraction of those to rent in San Francisco, meaning Airbnb revenue will be limited to about $150,000 a year.
Airbnb hosts say demand in the city is nonetheless "strong," with most hosts visiting Silicon Valley for about a week at a stretch, the newspaper reported.
City leaders were also eager to legalize the service -- in contrast to the controversy Airbnb legalization generated in San Francisco -- in part because "our hotels are full," in the words of Kim Walesh, the city's economic development director.
