A bipartisan group of state legislators led by Rep. Kitchens (R-Sturgeon Bay) are planning to introduce a bill that they say will give municipalities the tools they need to ensure they are receiving the correct amount of room taxes they are entitled to from lodging marketplaces like Airbnb.

Under current state law, room taxes are remitted based on ZIP codes. However, there are many parts of the state where several municipalities share the same ZIP code, making the room-tax collection process less accurate.

Under the legislative proposal, LRB 4224, those who are subject to the tax would have to provide the following information:

  • The address of each property;
  • The total sales for each property;
  • The tax collected for each property; and
  • The number of nights each short-term rental was rented.

Municipalities would be allowed to inspect or seek audits of room-tax records, either separately or jointly with other municipalities. Lodging marketplaces would be subject to fines for lack of compliance.

Click here to read the bill draft, LRB 4224