State, Airbnb Reach Tax Deal

The state of Wisconsin and Airbnb have reached an agreement that allows the home-sharing company to collect sales taxes.

Airbnb currently has tax agreements with more than 275 governments, including 21 states.

The Wisconsin deal allows Airbnb to collect sales taxes for the state and counties, as well as the Miller Park tax and a tourism-related tax in the Wisconsin Dells area.

Earlier this year, Madison became the first city in the state to work with Airbnb to collect taxes.

Ben Breit, the Midwest spokesman for the company, said it’s important for hosts to be able to pay their fair share in taxes.

“It’s even more important for local governments, for the state of Wisconsin in this case,” he said. “This is going to unlock brand new revenue for the state at a minimum of $700,000 annually moving forward, although we’re growing quickly in Wisconsin.”

Breit said the taxes will be collected from guests during the booking process and distributed to the state.

“The Wisconsin hosts who are sharing their rooms on Airbnb are never going to have to see this tax,” he said. “They are never going to have to worry about it. We collect the tax on the front end from the guest who is paying to stay in the home and then we remit it directly to the state.”

Breit said last year there were more than 100,000 people who stayed at an Airbnb in Wisconsin. He said the state also has about 3,300 registered hosts..

The Biz Times reported the tax collection will begin Saturday, July 1.

Editor’s note: This story was updated at 12:30 p.m. Friday, June 9, to include original reporting from WPR.