Connecticut first state for which Airbnb will remit tax

The short-term rental firm will withhold a 15 percent state hotel tax from host income

TRD MIAMI /
Jun.June 12, 2016 04:00 PM

Airbnb Inc., the short-term rental business, agreed to collect hotel taxes on behalf of Connecticut home owners who rent their properties through Airbnb.

That will make Connecticut the first state where Airbnb will withhold a hotel tax on behalf of people who rent their homes to its customers. Airbnb will remit the tax revenue to the state government, which has a 15 percent hotel tax rate.

The Airbnb tax-withholding practice is scheduled to start July 1.

The  government of Connecticut had administrative authority to work out a tax-withholding agreement Airbnb, so no enabling legislation was needed.

Connecticut home owners who have rented to Airbnb customers have been responsible for paying hotel tax to the state themselves.

About 1,800 home owners in Connecticut list their properties for short-term rental through Airbnb, and about 54,000 customers of Airbnb rented Connecticut homes in the year ended June 1. [Wall Street Journal] — Mike Seemuth


Related Articles

arrow_forward_ios
Miami Beach Mayor Dan Gelber and 1531 Stillwater Drive (Getty, Zillow)

Miami Beach slashes fines for illegal short-term rentals

Miami Beach slashes fines for illegal short-term rentals
Opera Tower (Wikipedia, Airbnb)

Opera Tower condo association sues Airbnb amid short-term rental crackdown

Opera Tower condo association sues Airbnb amid short-term rental crackdown
An illustration f Mayor of Miami Beach Dan Gelber (Credit: Nicholas Hunt/Getty Images)

Miami Beach to allow short-term rentals in condos, hotels

Miami Beach to allow short-term rentals in condos, hotels
The appeals court \rejected Miami Beach’s petition to overturn a ruling that determined that the city’s exorbitant fines for short-term rental violators ran afoul of state law (Airbnb, iStock)

Miami Beach racks up another court loss over short-term rental enforcement

Miami Beach racks up another court loss over short-term rental enforcement
Rafael Serrano and 3098 Alton Road

Appeals court rules Miami Beach cannot shut off water for nonpayment of short-term rental fines

Appeals court rules Miami Beach cannot shut off water for nonpayment of short-term rental fines
Miami Beach Mayor Dan Gelber (Credit: EVA MARIE UZCATEGUI/AFP via Getty Images)

Miami Beach shuts down short-term rentals due to coronavirus

Miami Beach shuts down short-term rentals due to coronavirus
Harvey Herndandez

Airbnb settles litigation with Miami development group alleging fraud

Airbnb settles litigation with Miami development group alleging fraud
Miami skyline (Credit: iStock and Wikipedia)

South Florida by the numbers: Super Bowl LIV Impact

South Florida by the numbers: Super Bowl LIV Impact
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...