Airbnb generates more than half a million dollars in tax revenue

Photo courtesy of Open Grid Scheduler / Grid Engine / MGN

SIOUX FALLS, S.D. (AP) - Airbnb rentals generated more than half a million dollars in tax revenue in South Dakota during the first year of the state's tax deal with the company.

The Argus Leader reports that Airbnb announced the vacation rental website remitted $568,000 in tax revenue through the first year of the agreement, which went into effect Sept. 1, 2017.

The deal was a coup for South Dakota, which was still in the middle of a U.S. Supreme Court case over whether online sellers had to pay in-state sales tax. The agreement allows Airbnb to collect and remit the state sales tax, municipal sales tax, municipal gross receipts tax and tourism tax on all eligible bookings.

Laura Spanjian is Airbnb's public policy director for South Dakota. She says the tax partnership ensures communities receive the full economic benefits of home sharing.