Reporting Short-Term Lodging

​Question

I'm offering short-term lodging using a third-party website. Who is responsible for reporting the tax?

Answer

If you furnish short-term lodging in Wisconsin, you must collect/remit Wisconsin sales tax on such sales if you hold a Wisconsin seller's permit or your taxable sales for the calendar year exceed $2,000.

However, if the third-party website meets the definition of lodging marketplace, the third-party website is required to register with the department for a lodging marketplace license.

Lodging marketplace means an entity that provides a platform through which an unaffiliated third-party offers a short-term residential rental to an occupant and collects the consideration for the rental from the occupant.

In addition to registering for a lodging marketplace license, a lodging marketplace must collect sales and use taxes and any applicable local room taxes from the occupant and forward such taxes to the appropriate taxing authority. The lodging marketplace must notify you that the taxes have been collected and forwarded.

If the third-party website does not collect tax, you are responsible for reporting and paying the taxes.

Additional information:

April 30, 2018