Airbnb Brings $568K in Tax Revenue to South Dakota
If you have ever rented a home or cabin in South Dakota you paid taxes on the rental price. And the owners of that property are also required to pay a tax. A sales and tourism tax are collected on all eligible bookings in the state.
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 September 1, 2017.
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 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.
Laura Spanjian is Airbnb's public policy director for South Dakota. She says the tax partnership ensures communities receive the full economic benefits of home sharing.
Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.