Connecticut Taxes Airbnb Sales

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This Connecticut “Castle” just got 15% more expensive to rent on AIRbnb.

Starting July 1, a new tax plan negotiated by state tax collectors with the popular web-site Airbnb, in which anyone can rent out their home or just a room to travelers, will pay taxes to the State of Connecticut on that revenue. 

According to Airbnb, Connecticut hosts earned approximately $3.5 million in the past year. While many states and other cities around the world have similar deals with the online company, this deal is the first in the tri-state area. Connecticut’s hotel occupancy tax is the highest of any state at 15%. 

Department of Revenue Services Director Kevin Sullivan has said that he hopes the deal can be a model for attempts by the state to collect revenue from other online businesses operating in Connecticut. 

Airbnb is currently valued at around $25.5 billion and in an attempt to expand and add to its travel offerings, the company has just raised $1 billion in debt financing from banks.