On: S.F. could get $11M a year when Airbnb collects hotel tax

[jayshahtx]

Am I the only one who doesn't think $11M is really going to move the needle for SF OR AirBnB?

[tshaddox → jayshahtx]

I would imagine that a 14% price increase to the end user will absolutely move the needle. That's massive.

[stefan_kendall3 → jayshahtx]

You don't collect revenue * tax when you introduce a tax. The artificially increased price pushes down the demand and will likely force suppliers off the market, lowering revenue overall.

I could draw the supply and demand curve, but it's pretty straightforward.

[refurb → jayshahtx]

I would guess they won't see anywhere close to $11M. People will simply start listing on Craiglist or other forums and avoid the whole AirBnB hassle.