Racine Newest Wisconsin City To Tax Airbnb Rentals

RACINE, WI — The City of Racine will be collecting an eight percent Racine tourist tax on Airbnb rentals beginning on June 1, joining cities like Madison and Green Bay who are already taxing such rentals.

According to resolution documents filed on the city's website Wednesday, the new regulations will require Airbnb to collect the eight-percent tax and will send those funds to the city.

“Working with Airbnb to collect and remit taxes is a great win/win for the city and the Airbnb hosts," Mason said in a prepared statement. "Collection can happen without additional burdens on an already overworked and understaffed clerk’s office. It also makes it possible for the city to start collecting revenue as soon as next month.”

Although city officials said levying the tax is expected to bring in additional revenue into city coffers, officials also said, "it is difficult to estimate the expected yearly collections that the City might receive from Airbnb hosted room taxes except to know that they will, by ordinance, equal 8 percent of all fees charged for lodging stays," according to official meeting documents.

City officials also noted that "there currently is not a significant number of hosts operating within the
City, however, we expect that number to increase exponentially as the demand for lodging posed by the influx of 10,000 Foxconn construction workers prompts many City property owners to begin offering an expanding supply of rooms to meet the growing demand."

A quick search on Airbnb's website for Racine netted 113 specific rooms for rent in the city, with an average price of $91 per night. Some of the season-specific rentals are advertising Lake Michigan beach houses which afford access to Racine's public beaches and lakeshore parks.

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