Homeowners and Individuals Providing Short-Term Lodging

NOTE: This article replaces the article dated January 25, 2016.

Homeowners or other individuals who make rooms or lodging available to the public for periods less than one month, must report and pay Wisconsin sales tax on such rentals. This includes the short-term rental of a home, room, apartment, cabin, inn, motel, or any other building in which accommodations are made available to the public. "One month" means a calendar month or 30 days, whichever is less, counting the first day of the rental and not counting the last day of rental.

The sales tax rate charged is based on the location where the lodging is furnished. A basic room tax, an additional room tax and a municipal room tax may also apply, depending on the location of the lodging. For example, lodging furnished in Milwaukee County is subject to 5.6% sales tax (5% state, .5% county, and .1% stadium) plus a 2.5% basic room tax. If the sale occurs in the City of Milwaukee, an additional 7.0% room tax applies.

If you are furnishing short-term lodging, you should apply for a seller's permit at tap.revenue.wi.gov/btr.

Exception For Taxes Collected by Residential Short-Term Lodging Marketplaces: Effective September 23, 2017, a lodging marketplace is required to register with the Department of Revenue for a license to collect taxes imposed by the state related to a residential short-term rental and to collect room taxes imposed by a municipality. Therefore, if a lodging marketplace notifies the owner that it is collecting the taxes, the owner is not required to collect and remit taxes on those rentals. For additional information about the new law, see the following:

Exemption: If a seller's taxable sales are less than $1,000 in a calendar year, an occasional sale exemption may apply to the sales. See the article titled "Occasional Sale Exemption in Section 77.54(7)(a), Wis. Stats.: When Does it Apply?" that was published in Wisconsin Tax Bulletin #122 (October 2000). Beginning with sales made in 2018, the occasional sale threshold is $2,000. See the article on page 19 of Wisconsin Tax Bulletin #199 titled "Occasional Sales Exemption Expanded."

Additional information about providing lodging services is also available in Publication 219, Hotels, Motels, and Other Lodging Providers.

December 07, 2017