The online home sharing platform Airbnb collected more than $324,000 in room tax revenue in the first year of its agreement with the city of Madison.
Airbnb announced a tax agreement with Madison in March 2017 authorizing Airbnb to automatically collect the 10 percent Madison room tax for the city.
At the time the agreement was announced, Airbnb noted that if guest arrivals and host revenue were to remain consistent with 2016 numbers, it would mean “at least $200,000 in annual tax revenue for the city.”
The $324,000 in revenue significantly outpaced those projections, according to a news release.
At the time, the Madison agreement marked Airbnb’s first tax partnership in Wisconsin. It started a trend, with Airbnb announcing similar tax agreements in the ensuing months with the cities of Green Bay and Racine.
Most notably, the company also collaborated with the Wisconsin Department of Revenue on an agreement to collect and remit state sales taxes on all Airbnb bookings throughout the state, including in Madison.
For more go to WKOW: http://www.wkow.com/story/38238580/2018/05/21/airbnb-room-tax-collections-in-madison-outpace-estimates