Home rental service Airbnb paid more than $2.5 million in occupancy tax revenue to the State of Wisconsin in the first year of its tax agreement with the state.
The amount was far more than expected. Airbnb estimated it would generate “hundreds of thousands of dollars” each year when the agreement was finalized in June 2017, and the state Department of Revenue estimated $700,000 based on 2016 numbers. The agreement went into effect July 1, 2017.
Airbnb attributed the higher-than-expected revenue to the increasing popularity of its service in Wisconsin. More than 260,000 guests stayed in Wisconsin Airbnb rentals in the year ending July 1, up 78 percent from the prior year.
The company has separate agreements in place with the cities of Madison, Green Bay and Racine to collect local taxes. There are about 4,900 Airbnb hosts in Wisconsin, who rent all or part of their homes to travelers.
Read more from BizTimes Milwaukee.