Under the new rule, Airbnb would be fined USD 1,000 a day for each listing on its site that has not been registered in advance.
Airbnb contends that the new rule -- which mandates that registrants submit the requisite paper work in person, along with a USD 50 fee -- violates the federal Communications Decency Act and the Stored Communications Act.
The ordinance, which goes into effect next month, "will harm thousands of everyday San Francisco residents who depend on Airbnb," the company wrote in a blog post on its website.
Officials in San Francisco and other cities worry that rental apartments are being removed from the market by owners who place them on Airbnb, leading to a shortage of available properties for prospective buyers.
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Airbnb, which is based in San Francisco, insists however that it helps visitors find affordable temporary lodging while allowing homeowners to supplement their income.
"There is a need for policies that protect San Francisco's housing stock and ensure the collection of hotel taxes but also enable residents who depend on Airbnb to make ends meet," Airbnb wrote.