Lodging Marketplace License Common Questions

  1. What is a lodging marketplace?

  2. I am offering short-term lodging in Wisconsin. Who is responsible for collecting and paying sales tax?

  3. Is short-term lodging subject to county and stadium tax?

  4. What about local room taxes?

  5. How do I know if the marketplace I am working with is collecting tax on my behalf?

  6. What is the occasional sales exemption?

  7. Is the lodging marketplace license the same as the seller's permit?

  8. If I know an individual is renting their home and is not collecting and remitting sales tax, what should I do?


Examples

Homeowner sells lodging using third-party website. Jane purchases a cabin in Door County. She rents out the cabin for a 14-day period using a third-party's website. The occupant pays Jane $2,200 for lodging.

Does Jane need to apply for a lodging marketplace license?

No. Jane does not need to apply for a marketplace license because she does not provide a platform through which others offer short-term residential lodging. However, Jane is selling taxable lodging. If the third-party website does not collect the taxes from the occupant, Jane must register for a seller's permit and remit applicable taxes to the Wisconsin Department of Revenue.

Jane should contact her municipality to determine if local municipal room tax or additional registration requirements apply.


Homeowner sells lodging using own website. John plans to rent his home each weekend of home football games. He will advertise the weekend rentals on his website.

Does John need to apply for a lodging marketplace license?

No. John does not need a lodging marketplace license. He does not provide a platform used by an unaffiliated third party to offer short-term residential lodging. If John's sales of short-term lodging qualify for the occasional sales exemption (do not exceed $2,000 for the calendar year), he is not required to hold a seller's permit. He should contact the municipality to determine municipal requirements.


Hotel or motel. A hotel located in Wisconsin rents out rooms and suites to travelers.

Does the hotel need to apply for a lodging marketplace license?

No. The hotel does not need to apply for a marketplace license because it does not provide short-term residential lodging. However, the hotel is selling taxable lodging. Therefore, the hotel must hold a Wisconsin seller's permit and collect applicable taxes. Municipal requirements (e.g., local room tax) may also apply.


Real estate company. A real estate company located in Wisconsin provides a website used by clients to offer short-term residential lodging. The real estate company collects payment for the rentals from the occupants.

Does the real estate company need to apply for a lodging marketplace license?

Yes. The real estate company is providing a platform used by an unaffiliated third party to offer short-term residential rentals. The real estate company must register for a lodging marketplace license and a Wisconsin seller's permit to collect applicable taxes. Municipal requirements may also apply.


FOR QUESTIONS OR COMMENTS CONTACT:

MS 5-77
WISCONSIN DEPARTMENT OF REVENUE
Customer Service Bureau
PO Box 8949
Madison, WI 53708-8949
Phone: (608) 266-2776
Fax: (608) 267-1030
Email additional questions to DORSalesandUse@wisconsin.gov

March 20, 2019