Pennsylvania officials say Airbnb has agreed to begin collecting and remitting the state’s 6 percent hotel occupancy tax on behalf of those who rent out their homes through the online service.

The agreement takes effect July 1.

The state hotel occupancy tax applies when anyone rents out a property for lodging for a period of less than 30 days.

The tax is expected to generate nearly $1 million a year for the state.

Pennsylvania also collects a 1 percent local hotel tax in Philadelphia and Allegheny County. The state says Airbnb will also collect and remit that tax.

The Wolf administration says the agreement helps level the playing field across the lodging industry.

This article was from The Associated Press and was legally licensed through the NewsCred publisher network.

Photo Credit: City Hall in Philadelphia, Pa. Maciek Lulko / Flickr