City to start collecting room tax from Airbnb rentals

City to start collecting room tax from Airbnb rentals
Airbnb/CNN

The Madison City Council unanimously passed an agreement Tuesday night to start collecting taxes from Airbnb rentals.

There are about 400 housing units in Madison that are used for Airbnb rentals, but only 20 of them are registered and comply with state laws.

According to a release from Airbnb, Airbnb will be automatically collecting and remitting the 9 percent Madison transient occupancy tax on all Airbnb bookings, making the process seamless for both hosts and the city.

The city will start collecting taxes from the Airbnb locations this summer.

Madison is the first Wisconsin city to pass a tax deal with Airbnb, according to the release.

The room tax is expected to bring in nearly $200,000 in revenue.

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