Airbnb brings $568K in tax revenue to South Dakota last year
SIOUX FALLS, S.D. (AP) — Airbnb rentals generated more than half a million dollars in tax revenue in South Dakota during the first year of the state’s tax deal with the company.
Airbnb announced the vacation rental website remitted $568,000 in tax revenue through the first year of the agreement, which went into effect Sept. 1, 2017, the Argus Leader reported .
The deal was a coup for South Dakota, which was still in the middle of a U.S. Supreme Court case over whether online sellers had to pay in-state sales tax. The state later won its case. But last year, Airbnb broke from other online sellers and struck a deal with state officials, saying it was willing to pay local taxes.
The agreement allows Airbnb to collect and remit the state sales tax, municipal sales tax, municipal gross receipts tax and tourism tax on all eligible bookings.
South Dakota is among more than 400 jurisdictions around the world where Airbnb collects and remits taxes, according to the company.
“We’re pleased to partner with the state of South Dakota on a tax partnership that ensures communities throughout the state receive the full economic benefits of home sharing,” said Laura Spanjian, Airbnb’s public policy director for South Dakota.
The company also said South Dakota hosts welcomed roughly 41,000 guests in 2017, which was a 141 percent increase over the year before. A typical host in the state earns about $5,700 a year and nearly a quarter of hosts are 60 years old or older, the company said.
Information from: Argus Leader, http://www.argusleader.com