City, Airbnb reach agreement
The Madison Common Council and Airbnb, a community-driven hospitality company, reached an agreement to ensure that the city will receive occupancy taxes on rentals booked in Madison through Airbnb.
At issue was the city’s concern that many people renting private rooms, homes, and apartments through Airbnb were not paying taxes. Now, Airbnb will collect and remit a 9% Madison transient occupancy tax on all Airbnb bookings.
Based on current Madison activity, which includes 400 active hosts, the deal could mean $200,000 in annual tax revenue for the city.
A typical Madison host earns $5,100 annually through Airbnb, according to a release.
Madison is the first Wisconsin city to ink such a deal.