Lodging marketplaces that provide a platform for short-term rentals must register with the Wisconsin Department of Revenue for a license to collect sales and use taxes. This applies to taxes imposed by the state on short-term rentals and also to local room taxes.
In addition to applying for the license, a lodging marketplace doing business in Wisconsin has to:
- register for a seller’s permit;
- contact each Wisconsin municipality where it makes short-term rentals to see if additional registration is required;
- collect state sales and use taxes from the occupant and forward them to the department;
- collect local room taxes from the occupant and forward them to the municipality; and
- notify the short-term rental owner that the taxes have been collected and forwarded.
The department’s notice is available at https://www.revenue.wi.gov/Pages/TaxPro/news-home.aspx.
News for Tax Professionals, Wisconsin Department of Revenue, November 3, 2017