GREEN BAY, Wis. (WBAY) - Home and apartment sharing company Airbnb has reached a tax agreement with the City of Green Bay.
The tax agreement allows Airbnb to collect and remit the 10 percent room tax on Airbnb bookings in the city.
Green Bay Mayor Jim Schmitt says he welcomes the deal as a source of revenue for the city.
Airbnb expects to collect and remit $55,000 per year for Green Bay bookings.
Airbnb says this will start on Aug. 1, ahead of the Green Bay Packers season.
"Home sharing is already infusing significant economic development for Green Bay by expanding lodging capacity during Packer games and other big weekends,” said Laura Spanjian, Airbnb Midwest Policy Director. “We are passionate about helping to economically empower middle-class Green Bay residents while bringing a brand new revenue stream to the City.”
Airbnb says it partners with cities because collecting and remitting room tax can be "incredibly complicated." The tax rules are set up for traditional rooming, such as hotels and motels.
Green Bay and Madison are the only Wisconsin cities to enter a tax agreement with Airbnb.