Philadelphia has legalized and plans to tax Airbnb and other short-term rentals ahead of Pope Francis' visit in September and next year's Democratic National Convention.
Airbnb says the city on Wednesday became the nation's largest to legalize rentals through online marketplaces. It joins San Francisco and Portland, Oregon, among cities authorizing the transactions.
Philadelphia also changed zoning rules to allow rentals in residential areas and is subjecting them to an 8 1/2 percent hotel tax. The rentals had been operating tax free.
City Councilman William Greenlee says Airbnb-type rentals are essentially short-term hotels and should be made to follow the same rules.
A permit is required for rentals lasting more than 30 days. The city says homes can't be rented out for more than 180 days per year.